Russia’s central bank seeks to ban cryptocurrency mining

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Russia is the third most cryptocurrency mined country in the world, but that could change soon. The country’s central bank asked the state for a definitive ban on both cryptocurrency mining and the possibility of making transactions using this type of currency.

According to the central bank, cryptocurrency mining and transactions pose “a possible risk to financial stability in emerging markets, including Russia.” The central bank has been requesting for some years to put greater limits and attention to this type of activity, which also poses risks to the supply of electricity in the country, due to the high consume of energy involved in mining cryptocurrencies.

One of the biggest criticisms about this activity and that of similar or related ones (as is the case of the creation of NFT’s) is how damaging it can be to the environment. That, in addition to the consequences that they may have on the electrical infrastructure of some countries due to the highdo consumption. In the case of Russia, the central bank began to ban the use of cryptocurrencies as a payment method in 2020. Now they propose to completely ban their mining in the country. According to the bank, Russians conduct an average of $5 billion in cryptocurrency transactions. Cryptocurrency exchange entities such as Binance assure that this proposal should lead to a dialogue with the central bank, and that they are willing to work with them, basically, to find a middle ground. [vía Reuters]

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