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as the war in Ukraine Continue In its 10th month, the Russian Federation recently announced a potential increase in energy production due to increased demand from cryptocurrency miners.
This increase in crypto mining can be attributed to the federal push legalize The use of cryptography as a means of conducting international trade.
Russia’s energy minister has acknowledged that the industry’s growing demand for electricity may require the installation of additional power plants in Siberia.
Russia is subject to both controversies Domestic When International Since the start of the “special military operation” in Ukraine.
the country is already Licensed International assets are now seized by the European Union and the United States, and their banking system is Quick protocol.
Image: Wired
Is Crypto the Answer to Russia’s Predicament?
Russian Energy Minister Nikolai Shulginov has acknowledged the growing need for energy from cryptocurrency miners in certain parts of Siberia.
According to local news outlets and crypto-focused media reports, Shulginov is aware that more power installations will be needed to meet their demand.
Russia is continued India in regulation of digital assets with Moscow under consideration Digital rubles as they tend to address the energy needs of crypto miners.
A complete change in this underlying feeling Ban Cryptocurrency to legalize it is thanks to Western sanctions against the country.
Russia can use cryptocurrencies as a means of conducting international trade because there are few regulations in the West regarding cryptocurrencies and their use in international trade.
But even if the country had experienced Despite last year’s mining revenue boom, the idea of ​​allowing citizens to use crypto as a means of payment has yet to sell.Instead, the Russian Federation uses cryptography to “Promote foreign trade.”
Crypto total market cap at $767 billion on the daily chart | Chart: TradingView.com
Russia: About War and Crypto
Shulginov points out:
“The Department of Energy’s position has always been based on the need to create working conditions for mining.”
Increasing energy production just to accommodate cryptocurrency mining will certainly impact the cryptocurrency market.For example, in January 2022, the country will 8.7% to the total hashrate of Bitcoin.
This could mean more minable cryptocurrencies entering the market and prices dropping. However, the federation’s outlook for cryptocurrencies as a means of conducting and facilitating international trade may limit this drop, although it is still felt, especially for major cryptocurrencies such as Ethereum and Bitcoin. .
With the legalization and regulation of digital assets, as well as an increase in mining activity in the country, Russia could become a hub for Web3 and DeFi once the war with Ukraine ends and results from it.
As 2023 rolls on, only time will tell if cryptocurrencies will affect the troubled Russian economy and how the cryptocurrency market will react to it.
– Featured Image: Frugal Traveler
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