President Vladimir Putin has raised concerns about the uncontrolled growth in electricity consumption for cryptocurrency mining in certain regions, warning that it could lead to power deficiencies. The issue is already apparent in the Irkutsk region, Buryatia, and the Trans-Baikal Territory, as reported by the Kremlin press service.
Putin underscored the severity of the situation, pointing out that the excessive power consumption by mining farms could result in disruptions in power supply to enterprises, housing and communal services, as well as cities and villages. He also noted that the lack of energy could hinder investment and infrastructure projects.
Calling for timely decisions at the federal level, Putin emphasized the need for systemic measures and the development of relevant laws to address the issue of cryptocurrency mining. He revealed that instructions had already been issued to resolve tax issues and establish tariffs for mining digital currencies in Russia.
According to the Ministry of Energy, cryptocurrency mining consumes 16 billion kilowatt hours annually in Russia, accounting for nearly one and a half percent of the country’s total electricity consumption. This number is expected to continue rising, posing a potential threat to the country’s power supply.