Russian President Vladimir Putin warned that crypto mining could lead to significant power shortages in some regions of the country as he called for an expansion of the central bank’s digital currency (CBDC), the digital ruble, at a meeting on July 17.
Putin said that the uncontrolled electricity consumption of Bitcoin and other crypto mining facilities is already causing problems with power shortages in several areas, including the Irkutsk region, Buryatia and the Trans-Baikal region.
He called the issue “acute and with serious consequences” for businesses, residential areas and social services, potentially halting investments and infrastructure projects.
Putin noted that crypto mining in Russia consumes 16 billion kilowatt hours (kWh) annually, or 1.5% of the country’s total electricity consumption, and usage is rising. He attributed the growth to Russia’s low electricity prices and the ease with which mining equipment could be moved.
He described instructions for federal mining law, including taxes and tariffs.
On July 17, Agence France-Presse said Russian lawmakers will discuss draft legislation that would allow only approved companies to run large crypto mining operations, while the government could ban mining in regions with energy shortages.
A week earlier, Russian newspaper Kommersant said that the State Duma Committee on the Financial Market had approved a draft law to decriminalize crypto mining in Russia while banning crypto from circulation. Current Russian laws reportedly ban crypto settlements, but not circulation.
Extension of CBDC post-pilot
During the latest hearing, Putin also said the country should move to a “broader, full implementation” of its CBDC, the digital ruble.
He said the country’s digital ruble pilot has generated more than 27,000 transfers and 7,000 payments for goods and services, demonstrating the “performance and functionality” of the asset. He reported participation from 12 banks, 600 individuals and 22 trade and service companies in 11 cities.
In an earlier report in June, Anatoly Aksakov, chairman of the Russian State Duma’s Financial Markets Committee, said Russia could start using its digital ruble domestically in the second half of 2025, after testing on domestic transactions.
The Russian central bank launched the pilot program in August 2023.