President Vladimir Putin has declared Russia a leading country in bitcoin mining, attributing this success to the nation’s surplus energy resources, particularly in Siberia. Speaking at the Eastern Economic Forum (EEF), Putin highlighted how Russia’s energy abundance has positioned it at the forefront of the global bitcoin mining industry.
Putin admitted that Russia has become the world’s leader in bitcoin mining because of abundant energy resources in Siberia. He stated that in 2023, the country mined 54,000 BTC (Bitcoin), earning over $ 550 million as tax revenue. Still, Putin also paid attention to other possible energy uses besides mining that the commercialization of oil resources must not compromise. He noted that though bitcoin mining is useful, the power can also be used to build structures such as houses, factories, and facilities in the social sector, among others.
New Cryptocurrency Law Set to Attract More Investors to Russian Mining
Sergey Bezdelov of the Industrial Mining Association said new figures could be expected soon. Russia has recently approved a new law for cryptocurrency mining. The new legislation is expected to attract more investors to the mining sector in Russia, hence increasing the production of bitcoin.
Sergei Tsiviliev, the Energy Minister of the Russian Federation, also supported Putin’s views and said that although energy overages could be dedicated to legal bitcoin mines, the country’s priority is social welfare and industrialization. According to Tsivilev, energy resources’ efficiency plays a significant role in the continuation of progress for the necessary social and economic achievements in the country.
Such statements of Putin, as well as the more general Russian policy regarding foreign investment in their country’s oil and gas resources, should be read within the context of a kind of double move; on the one hand, to develop and profit from the sale of these resources and, on the other, to ensure that mining does not detract from other forms of development. The significant production of bitcoins and the effect on tax revenues show increased authority in the global cryptocurrency market.
