Central bank says mining legalization threatens Russian economy

MOSCOW, Jan 28 (PRIME) -- Institutionalization of mining jeopardizes Russians and the economy, this is why the central bank finds banning it reasonable, a regulator spokesperson told PRIME on Friday.

“Mining is not in direct competence of the central bank, nevertheless, we see high risks from institutionalization of mining since this activity poses significant threats for the country’s economy and the people,” the spokesperson said.

“This is why we think it would be wise to forbid mining in Russia. We should finally underline that blockchain and mining are not the same, mining is not needed for all the cryptocurrencies.”

The regulator thinks that mining is a waste of electricity – grids overloading can trigger incidents and threat energy supplies to the residential buildings, social infrastructure facilities, and a rise of such electricity consumption can constrain progress of other industries.

“We can see Kazakhstan, where some mining capacities were moved from China after its ban,as an example of outages,” the spokesperson said, adding that the bitcoin’s high price only stimulates mining.

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