Putin Says Crypto Mining Could Bring Russia Competitive Advantages

President Vladimir Putin says crypto mining could bring Russia some competitive advantages despite the volatile nature of crypto and the risks it poses to investors as we are reading further in today’s latest cryptocurrency news.

The President of the Russian Federation Vladimir Putin says crypto-mining could actually turn out to be beneficial for the country. He did agree with the central bank that the digital assets are highly volatile and pose risks to the financial network but he does see potential in mining as it could give Russia certain competitive advantages.

The bank of Russia intensified the stance on crypto by proposing a total ban and the institution even argued that the asset class is a pyramid scheme that undermines the sovereignty of the monetary policy and even poses a threat to the local financial system. The Russian leader Vladimir Putin said he is quite aware of the ongoing discussions on the matter and outlined that regulation is in the spotlight. Similar to the central bank, Putin stated that the expansion of the asset class brings even more risks, for investors, because of high volatility. On the other hand, the President is in favor of mining as it could be beneficial to the nation:

“Although, of course, we also have certain competitive advantages here, especially in the so-called mining. I mean the surplus of electricity and the well-trained personnel available in the country.”

He urged the Bank of Russia and the local government to discuss the topic once again and come to a unanimous opinion. Putin’s comments came one day after the member of the Ministry of Finance Ivan Chebeskov opposed the ban on crypto in Russia because according to him, legislation like this could lead Russia to fall behind the tech industry. The government should regulate digital assets and not ban them.

It’s worth noting that Russia is the third biggest country in terms of BTC hash ate responsibility. Following the ban in China, the climate changed which allowed the US to take the lead followed by Kazakhstan. According to the Cambridge mining map, Russia’s hash rate share is 14%. a few months ago, the Russian Ministry of Economic Development, the State Duma, and the Ministry of Energy insisted that crypto mining should be a legalized business and should be regulated as an entrepreneurial activity.

The Deputy Director of the Digital Economy Development of Mineka Aleksey Minaev, went further to say that the mining industry deserves regulation but also respect. He added that if legalized, the Russian state could benefit from taxes and the income people make will be legal. Anatoly Aksakov as the head of State Duma reminded that crypto mining is not banned in Russia but still lacks clear taxation rules.