Russia will allow hydro and nuclear power for Bitcoin mining

English Sep 29, 2022

The Central Bank of Russia and the Ministry of Finance recently agreed on legislation aimed at regulating Bitcoin and cryptocurrency mining that is expected to be adopted by the end of this year.

Lawmakers want mining activity to be allowed only in parts of the country that can produce more electricity than they need, while it should be banned in other areas facing energy shortages.

Mining is expected to be allowed in regions with both hydro and nuclear power plants, which include: Irkutsk Oblast and Krasnoyarsk Krai, which have many hydro power plants, as well as the regions of Tver, Saratov, Smolensk and Leningrad, with their nuclear power plants.

In the capital Moscow and adjacent regions such as Moscow Oblast, Belgorod Oblast and Krasnodar Krai, which are historically energy deficient, mining will most likely be banned.

A unique case is the Karelia region, where Bitcoin mining will not be prohibited. However, in order to mine, companies will have to agree to certain conditions, such as supporting the construction of small local hydroelectric plants, which would benefit the local population. As in Texas, which is using mining to optimize its energy matrix, reducing the cost of electricity through increased production and the competitiveness of local companies.

Bitcoin mining is increasingly emerging as a way to monetize surplus electrical energy. In addition to the traditional use as a digital currency and protection of purchasing power, the Bitcoin network ends up helping the development and progress of energy sources, stimulating the economy of regions with energy surplus or boosting local energy production.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.