Putin signed the bill legalizing Bitcoin mining in Russia
The president of Russia, Vladimir Putin, signed on Thursday, August 8, the bill that legally authorizes Bitcoin mining in the country. Cryptocurrency could become a pillar of the local economy in a major shift in stance toward digital assets
The president of Russia, Vladimir Putin, approved Bitcoin mining in the country after signing the bill authorizing the activity last Thursday, August 8.
With this measure, Russia takes an important turn to the rigorous stance it had maintained in recent years towards cryptocurrencies, which could now become a pillar of the local economy.
It is important to take into account favorable aspects that preceded this change in the Russian government’s position, such as an attractive domestic climate and low energy costs that “caused a huge influx of mining firms to the country. Even some giants like BitRiver preferred sanctions rather than abandoning the comfort that Russia represents for their operations.”
Pressure from the West also accelerated the Kremlin’s response on cryptocurrencies. “After the war in Ukraine, sanctions hinder the normal development of the economy and trade with the rest of the world. Hence, stimulating the digital currency sector to forge an alternative seems to be the goal of the Slavic superpower.”
With this decision, related issues emerge, such as the importance of having a legal mining infrastructure, in addition to the implementation and development of artificial intelligence and other technological solutions that require computing power.
Without a doubt, it is essential for crypto companies to have a clear regulatory framework that allows them to “diversify businesses such as oil and gas. Specifically, surplus energy can be transformed into capital through digital mining.
The expansion of mining in Russia, in this way, becomes positive news globally.” The legalization of Bitcoin mining could also respond to “broader policies related to the BRICS block.”
M.Pino
Source: criptotendencia
(Reference image source: Erling Løken Andersen in Unsplash)
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