Russia-based Bitcoin $56,980.12 miners have made billions of dollars in profits from Bitcoin, the largest crypto asset by market cap, over the past year. According to a new Izvestia report, 54,000 Bitcoins, worth over $3 billion, will be mined within Russia by 2023, the director of the Russian Industrial Mining Association Sergey Bezdelov said at the Eastern Economic Forum this month.
Income to the State from Mining
According to Bezdelov, Bitcoin mining operations have generated an additional 50 billion rubles (about $552 million) in tax revenues for the Russian government. He also believes that new crypto regulations signed by Russian President Vladimir Putin last month, which officially allow mining Bitcoin and other digital assets, could increase investment in mining operations.
New investors will come.
Russia is the Second Largest Bitcoin Miner
According to an April 2023 report, Russia has become the second-largest Bitcoin miner in the world, with the United States retaining its top spot. This development coincides with other significant steps by Russia in crypto adoption.
Use of Crypto in International Trade
Last month, Bloomberg reported that the Russian government planned to use digital tokens for cross-border transactions in a bid to ease payment difficulties for companies affected by international sanctions. People familiar with the matter said Russia would attempt to use its National Payment Card System (NSPK) to try trading rubles and crypto assets using a test payments and exchange platform.
In August, Reuters reported that lawmakers in Russia had passed a bill that would allow the use of cryptocurrencies in international trade. The law is expected to come into force this month.
Russia’s steps regarding crypto assets could lead to significant changes in international trade and financial relations. The use of cryptocurrencies and blockchain technology could affect both local and global economic dynamics. Investors and companies should closely follow these developments and determine their strategies.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
