Putin Says: 'We Have Competitive Advantages In Bitcoin Mining'

Russian President Vladimir Putin has given crypto enthusiasts a glimmer of hope for the future of digital assets in the country, which have been under threat from a recent push to ban cryptocurrencies and mining.

The central bank last week said that Bitcoin BTC/USD mining should be banned. But President Putin seems to think Russia could do well mining the cryptocurrency.

His comments came one day after the government's Finance Ministry said it would be "necessary to allow these technologies to develop"—and that a cryptocurrency ban was not necessary. 

According to analysts in spring 2021, the price of electricity in Russia was $0.06 per kilowatt-hour for household use and $0.08 for business. To compare, in France, 1 kWh of electricity costs $0.2 for householders and $0.14 for business, which is four times more expensive than in Russia.

He also called on the country’s central bank to meet with his government in the near future so that they might come to a consensus on the use of crypto.

Russian Bitcoin miners provide more than 10% of the computing power to the Bitcoin network but the country's authorities have repeatedly talked about restrictions on the industry. China, which at one point hosted the majority of the world's Bitcoin mining activity, recently banned the practice, citing environmental concerns. The China ban on Bitcoin mining has since caused a mass migration of miners to other parts of the world.