The Central Bank sees big risks for the economy and citizens from the institutionalization of mining in Russia, said TASS press service of the regulator. They noted that mining is not directly related to the competence of the Central Bank.
“Nevertheless, we see great risks from the institutionalization of mining, since this activity poses significant threats to the country’s economy and citizens,” the Central Bank’s press service said in a response.
In mid-January, the Central Bank issued a report proposing to ban transactions with cryptocurrencies in Russia. The regulator saw numerous risks in them: an outflow of capital and a weakening of the ruble, withdrawal of money from deposits, the possibility of a complete loss of investments, loss of sovereignty of the national currency, etc. One of the proposals of the Central Bank is to completely ban the use of Russian infrastructure for operations with cryptocurrencies. At the same time, the Russians will have the opportunity to own digital currencies, as well as make transactions with them only in foreign jurisdictions.
Report of the Central Bank (.pdf) also provides for a ban on cryptocurrency mining in Russia. Mining creates a “waste of electricity” that threatens the energy supply of residential buildings, social infrastructure buildings and businesses. In addition, increased electricity consumption leads to additional carbon dioxide emissions, which calls into question the implementation of Russia’s environmental agenda. The process of “mining” cryptocurrencies also has indirect consequences, for example, an increase in demand for semiconductors and hardware.
The Ministry of Finance does not support the tough position of the regulator and is not in favor of banning, but for regulating the circulation of cryptocurrencies: introducing customer identification, conducting transactions through banks, disclosing transaction data to government agencies. These proposals are supported by Rosfinmonitoring.