This mirrors President Vladimir Putin’s thoughts.
The Russian Ministry of Economic Development has recently proposed to tax and legalize Bitcoin mining in areas with surplus electricity. The Ministry of Economic Development of Russia has proposed that Bitcoin mining, which is in a legal gray area, be considered a type of “commercial activity” and should be taxed after coins are converted to rubles.
reported Tuesday by local news agency Izvestia that the proposal was designed to allow the country to benefit from mining without overburdening its electric grid in areas where it is vulnerable. This problem has been faced by other countries such as Iran , Kazakhstan, and Iran . According to the ministry, this will be achieved by limiting mining to reliable grids and setting limits for individual miners’ electricity use.
The ministry is seeking to lower electricity rates and tariffs in order to encourage industry growth. The ministry will increase energy prices for miners once a specific energy threshold has been met, but that threshold is still unknown.
Evgeny Vasov, head of Comino’s liquid cooling tech provider, told Izvestia he believes that mining should be permitted in Russia. He also said that it was a smart investment in the tech sector. The President Vladimir Putin acknowledged the potential economic benefits that mining could bring to Russia, due to its “surplus electricity” and “well-trained personnel.”
Russia’s central banking is not so enthusiastic about the idea. It has demanded that Bitcoin and other cryptocurrency be banned. This was due to volatility and financial system risks. Regulating Bitcoin and other cryptocurrencies is more likely than ever thanks to recent negotiations between Bank of Russia (and the national government).
According to statistics, Russia is the third most popular country for Bitcoin mining. This is behind Kazakhstan and the United States. Within the U.S., Texas has become a mining Hotspot with Senator Ted Cruz and Governor Abbott being bullish about crypto and eager for the industry to come to the region.
While Russia approaches mining cautiously, Texas views it as an alternative to the unstable energy grid. The governor believes that the industry will help energy sources blossom within the state and prepare the grid for electricity-intensive winters.
