The Ministry of Energy in Russia has announced that the country will prioritize using its energy for social development rather than Bitcoin mining. Energy Minister Sergei Tsivilev emphasized that any surplus energy could be supplied to legal and registered energy miners operating outside the “gray” zone.
Russia’s Focus on Social Development Over Bitcoin Mining
Despite the potential for Russia to become a major player in Bitcoin mining following the implementation of crypto regulations, the government has made it clear that its primary focus is on supporting social development. Energy Minister Sergei Tsivilev made this announcement during the Easter Economic Forum held in Vladivostok.
According to Tsivilev, any excess energy from power plants could be allocated to companies engaged in Bitcoin mining activities. This surplus energy is typically generated when power plants operate below full capacity due to lower-than-expected demand. By allowing Bitcoin miners to utilize this excess energy, the plants can optimize their operations and improve their economic viability.
However, Tsivilev stressed that this energy would only be allocated to legal and registered miners. He highlighted the importance of miners paying taxes and operating within the bounds of the law, as many currently operate in a legal gray area.
While President Putin signed a cryptocurrency mining law in August to regulate the activity and bring it out of the gray zone, there are still concerns about potential disruptions in certain regions. Despite these challenges, Tsivilev reiterated that the government’s main priorities are the social development program and the advancement of the country’s industry.