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Russia's Bitcoin Boom Strengthens Ruble
23 Dec
Summary
- Bitcoin mining is bolstering Russia's economy and strengthening the ruble.
- The Russian central bank governor acknowledges difficulty in quantifying crypto mining's impact.
- Russia is promoting industrial mining, encouraging setup in areas with idle power.
Russia's burgeoning Bitcoin mining sector is reportedly providing a substantial boost to the nation's economy and contributing to the strengthening of the ruble. The governor of the Russian central bank, Elvira Nabiullina, has acknowledged that while quantifying the exact impact of crypto mining is challenging due to a significant portion operating in the "gray zone," it is indeed an additional factor supporting the ruble's exchange rate.
Historically, Nabiullina and the central bank have expressed skepticism towards cryptocurrencies, even calling for bans on mining and exchanges. However, recent years have seen a shift, with Moscow now encouraging miners to utilize areas with idle power reserves. This has spurred growth in both registered and unregistered mining operations, with the latter being associated with power shortages in traditional mining hubs.
The Russian government is also considering regulatory frameworks for cryptocurrency. Discussions are underway between the central bank, the Ministry of Finance, and other bodies regarding potential regulations. Major commercial banks, such as VTB Bank and Sberbank, have shown interest in offering crypto-related services and have already launched crypto derivatives trading products.
