Russian President Vladimir Putin said on Wednesday the country has distinctive features that allow it to benefit from bitcoin mining, while its central bank last week called for a complete ban on activity in the country as it fears that cryptocurrencies pose risks to its citizens.
Putin also asked the Bank of Russia to reach a consensus with the country’s Finance Ministry, which on Tuesday discouraged a comprehensive ban on bitcoin trading and mining in the country, citing how such a move could harm the country’s economy. Russia’s ability to compete in technology.
“The Central Bank does not oppose our technological progress and makes the necessary efforts to implement the latest technologies in this field,” Putin said during a meeting on Wednesday with members of the Russian government, addressing the divergent opinions. of the government body. and the central bank.
The central bank’s position on cryptocurrencies is based on concerns that “the expansion of this type of activity carries certain risks, and especially for the citizens of the country, given the high volatility and certain other components of this topic,” Putin said. .
“Although, of course, we also have certain competitive advantages here, especially in the so-called mining sector,” Putin added, referring to “surplus power” and “well-trained labor force.” of the country that could be leveraged for thriving bitcoin mining. industry there.
Russia rose to third place in the list of countries with the largest hashrate share in the Bitcoin network last year after China banned the asset and its underlying mining industry this summer. An exodus of bitcoin miners from Chinese soil has led to the establishment of mining farms in the United States, Kazakhstan and Russia. The Eastern European country’s low-cost energy and freezing climate make it attractive to miners as it allows for higher profit margins and greater hashrate production.