Vladimir Putin mulls Russia’s advantage in crypto mining

TL; DR Breakdown

• Vladimir Putin highlights Russia’s edge in crypto mining
• The president wants to regulate the space
• The central bank of Russia wants a ban on crypto

In the last few months, crypto enthusiasts and participants have watched with awe as Russia debates how to go about regulating digital assets. The country has been under immense pressure to kick digital assets and what they stand for into the curbs. However, a recent statement by President Vladimir Putin has shown that Russia might be on the verge of a reversal of fortunes for crypto and its participants.

Vladimir Putin weighs in on the crypto regulation debate

In a recent virtual meeting with the top echelons of the Russian government, President Vladimir Putin opened the day to regulate the crypto space. He positioned that Russia, among other countries, has an array of advantages to their sides in terms of mining and other related topics. The president talked about the abundance of electricity before mentioning the massive population to back its cause.

One of the critical points shows that Russia charges four times less for electricity than its fellow European country, France. While Russia levies households with $0.06 per KWh, France charges $0.2 for the same amount of electricity. For businesses, France charges a mammoth $0.14 per kWh compared to Russia, which stands at $0.08. The president also urged the Central bank to sit down with his cabinet and look for a way forward regarding digital assets.

The central bank of Russia wants a ban on crypto

In the last few days, the Central bank of Russia has proposed a light ban on the activities of crypto across the entire country. The bank mentioned that the market poses a massive threat to Russia’s emerging market in its report. However, this is not the first time the bank has shown its disregard towards digital assets and the crypto sector. Last month, the president of the bank, Elvira Nabiullina, mentioned that the country would not welcome any investment that would go into the growth of the crypto sector.

However, top executives in the Russian government have called for softer tackling of the crypto sector in the country. The Finance Minister, backing up Vladimir Putin that crypto can be regulated instead of banned. Ivan Chebeskov noted that a crypto ban would pull the country backward regarding emerging technologies. He also said that the country needs to allow crypto to blossom.

In the same vein, Putin mentioned that the central bank would not hinder the country’s progress on the technology front. Despite arguing for crypto, Putin also highlighted the dangers that the assets pose on the economy of countries. Even though the Central bank is against crypto, its digital Ruble, a digital asset-backed by its native currency, has been in the works for quite a while now.