on the crypto
Russia conducted a study that estimates that the country's traders own more than 16,5 trillion rubles ($ 200 billion at quotations current) of cryptocurrencies. The calculation analyzed the IP addresses of the major crypto traders in the country and subsidiary information. According to data shared by Bloomberg, over 17 million Russians own cryptocurrencies.
The Russian government has historically never embraced cryptocurrencies
However, the popularity of digital assets is growing, leading the Bank of Russia, and President Vladimir Putin himself, to seek ways to regulate crypto.
It should be noted that due to the decentralized nature of cryptocurrencies, these estimates may not be 100% accurate:
“The Russians really have a lot of money in cryptocurrencies, but it's hard to gauge the true amount. Many people are using cash, derivatives, or have two passports and can open a cryptocurrency wallet in someone else's name. "
said Alexander Filatov, co-founder of blockchain developer TON Labs.
Amid statements of potential financial stability risks, Russia's central bank has proposed a blanket ban on the use, trading and mining of all cryptocurrencies within its borders. However, following recent reports, a ban now seems less likely.
In a video conference held on January 26, Russian President Vladimir Putin stated his position on the issue, and it is not entirely in line with the recent appeal from the Central Bank of Russia.
Putin sees the benefits of Crypto Mining
While President Putin agrees with the central bank's claims that cryptocurrency poses "some risks, first and foremost to the citizens of the country, given its significant volatility," he has taken a slightly different stance when it comes to the issue of cryptocurrency. crypto mining area.
Speaking of crypto mining, President Putin said:
“We also have some competitive advantages here, especially in the so-called crypto-mining. I mean the surplus of electricity and the well-trained teams in the country ”.
The president has now asked for consent following the central bank's push for a blanket ban. In line with the president's position, Russian Finance Minister Ivan Chebeskov also said that Russia needs to "give these technologies the opportunity to develop."
Russia is now one of the most attractive mining regions in the world due to its relatively cheap electricity. In Russia, 1 kWh of electricity costs $ 0,06 for households and $ 0,08 for businesses, compared to $ 0,2 in France for households and $ 0,14 for businesses.
Russia is currently the third largest contributor to Bitcoin's global hashrate, only behind the United States and Kazakhstan.
Why should you care
The Russian president's attitude towards mining has given cryptocurrency enthusiasts a glimmer of hope that Bitcoin can avoid the same fate that the ban in China has brought.
