According to the Russian Ministry of Industry, the local Bitcoin business uses more than 2% of the country’s total electricity.
According to Vasily Shpak, Deputy Head of Industry, Russian crypto mining companies need more energy than the local agricultural industry.
“Mining must be recognized”
Lawmakers are worried that this will extend beyond certain industries such as agriculture. As a result, it must be “whitewashed” and placed under government control.
Vasily Shpak, Deputy Head of the Ministry of Industry of Russia, states that domestic cryptocurrency mining is in the “gray zone” of the economy as it is not taxed or controlled by the government.
He said it could be risky unless the action was “whitened”:
“Our view is clear here. The mining industry must be recognized, controlled and integrated into the industrial sector.”
Shpak has described the current state of crypto mining, but predicts that it will use less power in the near future.
The ministry estimates that the industry is using more than 2% of Russia’s total energy consumption.
In addition, digital asset mining has a larger market share than agriculture.
The latter is an important niche for the country, as arable land occupies about 7% of the total land area. Over 10% of the world’s total grain exports and 23% of the world’s wheat exports come from Russian land.
“Do you know how much mining contributes to our country’s overall power generation map?” And I would tell you: it’s over 2%. “This is higher than the cost of electricity in agriculture,” Shpak added.
Putin is working on cryptocurrency mining
It is worth mentioning that Russia is a major player in the world of cryptocurrency mining. According to a survey released by the Cambridge Center for Alternative Finance, the country controls more than 11% of the world’s hash rates.
The United States is first, followed by Kazakhstan.
Read again – There he won the proceedings. Here, the NFT price for “Never Fear Truth” has skyrocketed!
President Vladimir Putin is said to be in favor of cryptocurrency mining, so it is quite possible that it will continue to be a major element of Russia’s ecology. He said it might be in his country a few months ago:
“Of course, again, there are certain competitive advantages, especially in so-called mining,” the author says.
I’m talking about the country’s abundant electricity and a well-trained workforce. ”
Cryptocurrency mining has also been praised by the Ministry of Economic Development, the Ministry of Energy and the House of Representatives. They urged miners to be recognized as entrepreneurs last year, making it a legitimate company.
