Bank of Russia: "Mining poses a threat to the country's economy" – Bits Media

The Central Bank explained the desire to completely prohibit cryptocurrency mining in Russia with concern for the state of electric networks, ecology and economic development of the country.

The Bank of Russia made an explanation, why it is necessary to distinguish the useful blockchain technology and Malicious mining technology. Mining, according to the regulator, forms a request for the creation of infrastructure for the circulation of crypto assets, warms the interest of society in cryptocurrencies, creates incentives for bypassing regulation:

“We see great risks from the institutionalization of mining, since this activity creates significant threats to the country's economy and citizens. Therefore, we consider it advisable to ban mining in Russia ".

The opinion “On the competitiveness of mining in Russia” promoted in society ”, According to the Central Bank, somewhat exaggerated and connected "not using high technologies, And with cheap electricity tariffs ". Russia does not produce, And imports hardware equipment for mining, Emphasize representatives of the regulator.

Based on Kazakhstani experience, The Central Bank is trying to prove, that due to the growing consumption of electricity by miners, it is possible to overload networks and accident, threatening "energy supply of important infrastructure facilities". Besides, Mining is the cause of environmental problems and restrains the development of "many sectors of the economy".

Recall, what 21 january 2022 the year of the Central Bank published the report "Cryptocurrencies: Trends, risks, Measures "and launched a round of public consultations on the prospects of a complete ban on mining and the turnover of cryptocurrencies in Russia.

The report was criticized by state institutions: Ministry of Finance, Mincifers and the Ministry of Economic Development. Russian President Vladimir Putin called on the Central Bank and speaking for regulating government officials to come to an agreement, Noticing, that "Russia has competitive advantages in mining".

To 1 Martha 2022 the Central Bank has been waiting for a proposal from participants in the Russian cryptocurrency market and interested departments, After which the agreed decision on the fate of the crypto industry must be prepared.