Russian President Vladimir Putin has explained the country’s strategy for digital currencies and digitalization of the financial sector. Putin said that cryptocurrencies are crucial for Russia, and no one has the right to miss this chance to create solid legal provisions for it.
Emphasizing the opportunities offered by digital technologies, Putin also referred to their effects on trade, banking, and the sphere of relations between countries. He underlined the potential of quick action in the framework of the legislative regulation of digital assets, as well as the creation of the appropriate infrastructure for their circulation.
Putin admitted that Russia had made much progress in digital assets; for example, there was a pilot launch of the digital Ruble by the Russian Central Bank in 2021. This experiment included twelve banks, 600 people, and 22 enterprises in 11 cities. By July 1st, it has handled more than 27,000 transactions for products and services and over 7,000 payments.
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Comprehensive Strategy for Digital Ruble Implementation and Cryptocurrency Regulation
The President set a goal to fully implement the digital ruble in the banking and industrial sectors. He also observed that cryptocurrencies such as bitcoin are gradually becoming prevalent in the financial market. Though not conventional money, these tokens are employed in international business.
Despite this progress, Putin expressed concerns about the environmental impact of cryptocurrency mining in Russia. The Ministry of Energy predicted that mining activities consume 16 billion kilowatt hours per year, which accounts for half a percent of the total electricity consumption in the nation, and low electricity charges in the local regions are considered to help increase mining activity.
Putin warned of potential power shortages in regions like the Trans-Baikal Territory, the Irkutsk region, and Buryatia due to unchecked growth in electricity usage for mining. To manage these risks, he has commanded measures that can lead to managing digital currency mining, such as taxation and tariffs.
In conclusion, President Putin’s address outlines a comprehensive plan to integrate digital currencies and technology into Russia’s financial industry. By establishing a robust legal framework and necessary infrastructure, Russia aims to capitalize on the potential of digital assets while addressing the challenges posed by cryptocurrency mining. This strategic approach underscores the nation’s commitment to staying at the forefront of digital innovation and financial technology.
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