ALBAWABA - Russian Leader Vladimir Putin delivered a warning on cryptocurrency mining in the nation, as reported by AFP, claiming that it may exhaust the nation's electrical supply significantly and cause power shortages in the surrounding regions.
During a live discussion with government officials on Wednesday, Putin said that the mining of cryptocurrencies accounts for over 1.5% of the nation's total power usage, adding that this percentage is still on the rise.
Russia is a leading global participant in the cryptocurrency mining industry, wherein hundreds of computers stored in hangars or warehouses are used to verify transactions on the blockchain and earn new tokens. Nonetheless, the uncontrolled business is met with skepticism from the Kremlin, with a bill to strengthen oversight now being considered by the parliament.
Russia was the second-largest cryptocurrency mining nation in the world in 2023, after the United States, despite its stringent cryptocurrency rules. In recent times, the former chart tops, China and Kazakhstan, have imposed restrictions on cryptocurrency mining operations, according to Moscow Times.
“What we need to pay attention to here, and what is alarming, is that uncontrolled growth in electricity consumption for cryptocurrency mining can lead to power deficits in certain regions,” Putin said, noting that as a result extensive bitcoin mining, electricity shortages have already occurred in three Siberian locations.
Next week, Russian legislators will debate a draft legislation governing cryptocurrencies in the nation, AFP adds, which would restrict large-scale mining to authorized businesses and give the government the authority to outlaw mining in specific areas in the event that the country's energy supply is threatened.
