Russia prefers CBDC rubles due to positive crypto outlook
Russia is prioritizing CBDC rubles and it looks like this amazing project could be launched in the coming years as an overall positive outlook for cryptocurrencies as we can more clearly see its death in the latest crypto news.
After the Chinese authorities banned cryptocurrency transactions, turning them into illegal financial activities, local crypto miners stopped paying attention to this and turned to other cryptocurrency exchanges, other countries to continue their business. The United States became the leader in terms of BTC production with a 35.4% market share, while Kazakhstan is currently ranked second and Russia is third. This is not surprising since Russia has some advantages, which means that it conducts crypto operations in the country, which is quite lucrative for miners. It has cheap electricity and friendly legislation. According to analysts, the price of electricity in Russia in the spring of 2021 will be $ 0.06 / kilowatt / hour for the population. In France, for example, a kilowatt-hour of electricity costs a household $ 0.2, which is four times more than in Russia. According to other estimates, the difference in cost between Russia and Europe is almost 7.5 times.
Most private cryptocurrency mining and mining companies have their origins in the country and around the world, but many miners in Russia did not survive the 2018 crypto winter, when the price of bitcoins fell to $ 3,500 and mining was done at a big loss. However, COVID is forcing many to seek additional income and alternative ways to raise capital. The favorable mining environment has helped state oil companies show that miners are using associated gas to generate electricity. Vitaly Boroshenko, co-founder of industrial mining operator BitCluser, said that mining in Russia will find support both from the state and from private companies due to high electricity consumption:
“The bitcoin mining industry is a single consumer of electricity. The uniqueness stems from the area’s high flexibility with regard to the location of payment methods and distribution of electrical loads. Huge facilities have been built in remote areas of the country providing tax revenues for local households and jobs for local residents. And since there is no shortage of electricity, the authorities can only help. ”
Like many countries, Russia is following a global trend and there are already early signs of various proposals to regulate the industry. They also discussed the law on digital financial investments, which for the first time aims to regulate cryptocurrencies and mining, as well as taxes, but does not recognize cryptocurrencies as a means of payment. Russia gives priority to the CBDC ruble, but we can only wait and see when the project will be implemented.