{"id":574314,"date":"2024-09-08T12:04:30","date_gmt":"2024-09-08T12:04:30","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=574314"},"modified":"2024-09-08T12:04:30","modified_gmt":"2024-09-08T12:04:30","slug":"russias-energy-focus-shifts-to-social-development-not-bitcoin-mining","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/russias-energy-focus-shifts-to-social-development-not-bitcoin-mining","title":{"rendered":"Russia’s Energy Focus Shifts to Social Development, Not Bitcoin Mining"},"content":{"rendered":"

Russia’s Ministry of Energy has declared<\/a> that the nation will prioritize using its energy resources for social development purposes, rather than for Bitcoin mining. This statement was made by the Energy Minister, Sergei Tsivilev, who emphasized that while surplus energy could be directed toward Bitcoin mining, it would only be allocated to legal and registered operators, keeping them outside the “gray” zone.<\/p>\n

Bitcoin Mining Not a Priority for Russia’s Energy Use<\/h2>\n

Despite some expectations that Russia could become a major hub for Bitcoin mining, driven by new crypto-related regulations, the government appears to have other objectives. According to Minister Tsivilev, Russia’s energy resources will first and foremost be focused on aiding the country’s social development programs.<\/p>\n

During the Eastern Economic Forum, which took place in Vladivostok, Tsivilev provided further clarification on this stance. He explained that energy surpluses from power plants could potentially be utilized by Bitcoin mining companies<\/a>. These surpluses arise because power plants sometimes operate below their expected demand levels, which can negatively impact their performance and financial efficiency. In such situations, Bitcoin miners could step in to use the excess energy, thereby ensuring the plants continue to run at full capacity and improve their economic outcomes.<\/p>\n

Conditions for Bitcoin Miners to Access Surplus Energy<\/h2>\n

Tsivilev elaborated that this surplus energy would be available to miners only under specific conditions. He stated,<\/p>\n

\n

When there is a surplus, so that the stations work at full capacity, we are ready to give this surplus energy to miners. But on condition that only surplus energy. And again on condition that the miner must be legal.<\/p>\n<\/blockquote>\n

His remarks emphasized the importance of Bitcoin miners operating in a fully legal manner, which includes being properly registered and paying taxes.<\/p>\n

This focus on legality comes in response to the fact that many Bitcoin miners in Russia still operate within a “gray” zone. The government’s stance aims to bring more miners into a regulated framework, ensuring they comply with national laws.<\/p>\n

Cryptocurrency Mining Law and Regional Restrictions<\/h2>\n

In August, President Vladimir Putin signed into law new regulations for cryptocurrency mining, officially bringing the activity out of the aforementioned “gray” zone. While this new law establishes a legal framework for crypto mining, it also gives the government the power to restrict mining activities in certain regions of Russia. These potential restrictions have sparked concerns within crypto-mining associations<\/a>, as they fear such measures could lead to significant disruptions in their operations.<\/p>\n

Despite these regulatory changes, Tsivilev made it clear that Russia’s primary focus remains on social development and industrial growth, rather than on fostering a thriving Bitcoin mining industry. He concluded his comments by stressing that the country’s top priorities are “the social development program” and “the development of our industry.”<\/p>\n

In summary, while Russia’s energy sector may have the potential to support Bitcoin mining<\/a>, the government has placed its emphasis on using its resources for social and industrial progress. Surplus energy may be made available to Bitcoin miners, but only under strict legal conditions, ensuring that the nation’s broader development goals remain the central focus.<\/p>\n

\n

#Russia<\/a> Will Prioritize Supplying Power for Social Development Over #Bitcoin<\/a> Mining https:\/\/t.co\/YTTCViGgqP<\/a><\/p>\n

— Bitcoin.com News (@BTCTN) September 7, 2024<\/a><\/p><\/blockquote>\n