Russia will prioritize using its energy for social development instead of Bitcoin mining, according to the Ministry of Energy. Energy Minister Sergei Tsivilev stressed that if there is a surplus in certain areas, this power can be supplied to legal and registered energy miners operating outside the “gray” zone.
Russia Will Not Prioritize Supplying Energy for Bitcoin Mining Activities
While many experts believe that Russia can become a Bitcoin mining powerhouse due to the passing of some crypto-related regulations, it seems that the country has other priorities in sight. Russian Minister of Energy Sergei Tsivilev highlighted that Russia’s power would be focused on supporting the country’s social development.
At the Easter Economic Forum, an event celebrated in Vladivostok, Tsivilev explained that a surplus in any power plant could be assigned to companies carrying out Bitcoin mining activities. This is because operating at lower-than-expected demand affects these plants’ operations, reducing their output. This worsens the plant’s economy, and consumer demand grows slowly, making it possible for bitcoin miners to use this energy.
Tsivilev stated:
When there is a surplus, so that the stations work at full capacity, we are ready to give this surplus energy to miners. But on condition that only surplus energy. And again on condition that the miner must be legal.
The minister reinforced that these miners must be registered legally and pay taxes, given that many bitcoin miners still operate in a “gray” zone.
President Putin enacted a cryptocurrency mining law in August that regulates the activity and takes cryptocurrency mining out of the gray zone Tsivilev refers to. However, this law gives the government authority to prohibit the activity in certain Russian regions, an element fought by crypto-mining associations in the country due to the possible disruptions it might trigger.
In this regard, Tsilived concluded that the country’s priorities were “the social development program” and “the development of our industry.”