Russian President Putin Warns of Power Shortages from Crypto Mining, Calls for Expansion of Digital Rouble
Russian President Vladimir Putin has issued a stark warning about the potential power shortages that could arise from the growing trend of cryptocurrency mining in the country. In a meeting on July 17, Putin expressed concerns about the uncontrolled electricity consumption of Bitcoin and other crypto mining facilities, citing issues in regions such as the Irkutsk region, Buryatia, and Trans-Baikal Territory.
Putin described the situation as “acute and fraught with serious consequences” for businesses, residential areas, and social facilities, highlighting the potential impact on investment and infrastructure projects. He noted that crypto mining in Russia currently consumes 16 billion kilowatt-hours annually, accounting for 1.5% of the country’s total electrical consumption, with usage on the rise due to low electricity prices and the ease of moving mining equipment.
To address these concerns, Putin outlined plans for federal mining legislation, including measures related to taxation and tariffs. Russian lawmakers are set to discuss draft legislation that would restrict large crypto-mining operations to approved companies and allow the government to ban mining in regions facing energy shortages.
In addition to addressing the challenges posed by crypto mining, Putin also emphasized the need to expand the country’s central bank digital currency (CBDC), the digital rouble. He reported positive results from the digital rouble pilot program, which has seen over 27,000 transfers and 7,000 payments for goods and services involving 12 banks, 600 individuals, and 22 trade and service enterprises across 11 cities.
Looking ahead, Putin called for a “wider, full-scale implementation” of the digital rouble, indicating that Russia could begin using the CBDC domestically in the second half of 2025 following testing for domestic transactions. The central bank launched the pilot program in August 2023, signaling a significant step towards the adoption of digital currency in Russia.
