Russia Makes CBDC Ruble A Priority Due To Positive Crypto Outlook

Russia makes CBDC ruble a priority and it seems that this amazing project can be introduced in the upcoming years because of the overall positive outlook on crypto as we can see further in our cryptocurrency’s latest news.

After the Chinese authorities introduced a ban on crypto transactions by making them illegal financial activity, the local crypto miners dropped off the radar and moved to other countries so they can go on with their businesses. The United States became the leader in terms of BTC mining volume with a 35.4% share while Kazakhstan is now in second place and Russia comes in third. It is not surprising because Russia has a few advantages which mean that it is conducting crypto operations in the country and that is quite lucrative for the miners. There’s cheap electricity and a friendly legislative regulation. As per the analysts in spring 2021, the price of electricity in Russia was set at $0.06 per kilowatt per hour for households. In France for example a kWh of electricity costs $0.2 for households which is four times more expensive than in Russia. Other estimates show that the difference in cost between Russia and Europe is closer to 7.5 times.

Most private crypto companies and mining companies emerged in the country and in the world as well but many Russian miners didn’t survive the crypto winter back in 2018 when Bitcoin’s price dropped to $3500 and made mining quite unprofitable. However, COVID forced a lot of people to look for additional income and search for alternative ways to replenish the capital. Favorable conditions for mining contributed to the fact that the oil companies owned by the state suggest crypto mining activities are using associated gas to generate electricity. The co-founder of industrial mining operator BitCluser Vitaly Boroshenko said that with high power consumption, mining in Russia will find support from both the state and from private companies:

“The Bitcoin mining industry is a unique purchaser of electricity. The uniqueness comes from the highly flexible nature of the sector in terms of payment method location indifference and electrical load distribution. Huge facilities are built in remote parts of the country, giving tax revenues to local budgets and jobs to local residents. And since there is no shortage in electricity, the authorities can only support this process.”

Like many countries, Russia followed the global trends and there were early signs of various proposals to regulate the industry. The law on Digital Financial Assets was also discussed and this was the first law that aimed to regulate crypto and mining as well as taxation but didn’t recognize crypto as a means of payment. Russia makes CBDC ruble its priority but we can only wait to see when the project would be launched.