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Local bitcoin businesses, according to Russia’s Ministry of Industry, utilize more than 2% of the country’s overall power volume.
According to Vasily Shpak, Deputy Head of the Ministry of Industry, Russian crypto mining enterprises require more energy than the local agriculture industry.
“Mining must be recognized”
Legislators are worried that this extends beyond specific industries, such as agriculture. As a result, it must be “whitewashed” and placed under government control.
Vasily Shpak, Deputy Head of Russia’s Ministry of Industry, has stated that domestic cryptocurrency mining is in the “gray zone” of the economy since it is neither taxed nor controlled by the government.
He said that unless the action is “whitewashed,” it may entail risks:
“Our view is clear here: mining must be recognized, controlled, and integrated into the industrial sector.”
Shpak explained the present state of crypto-mining, although projecting that it will utilize less power in the near future.
The industry utilizes more than 2% of Russia’s overall energy consumption, according to Ministry estimates.
Furthermore, digital asset mining has a larger market share than agriculture.
The latter is a critical niche for the country, as arable land accounts for approximately 7% of the total land area. Over 10% of the world’s total grain exports and 23% of global wheat exports come from Russian lands.
“Do you know how much mining contributes to our country’s overall power generating map?” And I’ll tell you: it’s more than 2%. Shpak added, “This is higher than the cost of power for agriculture.”
Putin is into crypto mining
It’s worth mentioning that Russia is a major player in the world of cryptocurrency mining. According to research published by the Cambridge Center for Alternative Finance, the country controls over 11% of the worldwide hashrate.
The United States is first, followed by Kazakhstan.
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Because President Vladimir Putin is said to be in favor of cryptocurrency mining, it has a decent possibility of remaining a major element of Russia’s ecology. He stated it may be advantageous to his country a few months ago:
“Of course, we have certain competitive advantages here as well, especially in the so-called mining,” says the author.
I’m talking about the country’s abundant electricity and well-trained workforce.”
Crypto mining was also praised by the Ministry of Economic Development, the Ministry of Energy, and the State Duma. They urged last year that it be made a legitimate company and that miners be recognized as entrepreneurs.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
