Putin Warns: Unnegated cryptomining endangers Russia's power grid
Putin Warns: Unnegated cryptomining endangers Russia's power grid
Brics publishes crypto warning: Effects on the power supply in Russia
The Brics states (Brazil, Russia, India, China and South Africa) have given a new urgent warning regarding cryptocurrencies and their mining processes. The focus is particularly on the effects that unregulated cryptomining has on the power supply. Russian President Vladimir Putin recently explained that the uncontrolled mining of cryptocurrencies can lead to power failures and blackouts.
power consumption through cryptomining: a challenge for Russia
According to the Russian Energy Ministry,
- 16 billion kilowatt hours a year
- 1.5% of the total electricity consumption of Russia
- possible bottlenecks and blackouts
challenges through strict cryptocurrency laws
Russia has very strict laws in the field of cryptocurrencies. In 2020 Putin signed a law that legalized cryptocurrencies as digital financial systems, but prohibited their use to pay goods and services. Nevertheless, cryptomining remains popular due to the low electricity costs and easy access to equipment in Russia. According to the United States, Russia is in second place worldwide when it comes to mining cryptocurrencies. China, another BRICS member, has severely restricted his activities in cryptomining.
Effects on new projects and investments
At a meeting with a meeting with high-ranking government representatives, Putin expressed the concerns of regional authorities that mining farms could burden new shops, residential areas and social facilities with care interruptions and delay promising investments and infrastructure projects. In order to meet these challenges, Putin demanded strict tax and tariff regulations for miners and a federal law to regulate cryptomining.- pension interruptions
- load by mining farms
- structural projects placed on ice
- Requirement for tax and tariff regulations
Brics: Krypto as part of new financial strategies
The BRICS countries are considering integrating cryptocurrencies and digital assets into their new financial strategies. The alliance believes that these digital assets could help develop a new common currency in order to become independent of the US dollar. At the same time, however, they have recognized that regulation is necessary to avoid the risks mentioned by Russia such as power outages.
Brics stands for Brazil, Russia, India, China and South Africa - an economic alliance of great emerging countries.
FAZIT
The warnings of President Putin and the Brics countries illustrate the complex challenges and opportunities that arise from cryptocurrencies and their mining. While the potential advantages of digital assets for the financial world of the BRICS members could be significant, careful handling and regulation is necessary to ensure the stability of the power supply and the infrastructure projects.
- Nag
Kommentare (0)