Putin Warns of Crypto Mining Power Shortages, Advocates CBDC Expansion

Russian President Vladimir Putin warns of significant power shortages due to crypto mining.

Affected regions include Irkutsk, Buryatia, and Trans-Baikal Territory.

Russian Cryptocurrency Mining Causes Serious Problems

Uncontrolled electricity consumption by Bitcoin and other crypto mining facilities is causing acute issues.

The annual energy usage by crypto mining in Russia is 16 billion kWh, 1.5% of the country's total.

Putin calls for tighter regulation

Putin calls for federal mining legislation, including taxation and tariffs.

Draft legislation permits approved companies for large mining operations and bans mining in energy-shortage regions.

Russia’s existing encryption regulations need to be updated

A State Duma Committee draft bill proposes decriminalising crypto mining while banning crypto from circulation.

Existing laws ban crypto settlements but allow circulation.

Putin advocates vigorously issuing CBDC

Putin advocates for wider implementation of the digital rouble.

The CBDC pilot has completed 27,000 transfers and 7,000 payments.

Participants include 12 banks, 600 individuals, and 22 enterprises across 11 cities.

The digital rouble may begin domestic use in the second half of 2025 following further testing.