Encouraging signals have been accumulating in Russia recently. The Ministry of Finance wants a favorable legal framework to bitcoin.
Bitcoin? Da.
The Russian Ministry of Finance proposes to treat bitcoins mined on the territory of the Russian Federation as an exportable commodity.
This would circumvent complex currency control laws and other legal obstacles to simplify transactions. This proposal came from Finance Minister Ivan Chebeskov during a roundtable discussion on the future of digital finance in Russia.
The minister recalled that his ministry and the Central Bank adopted a common position to recognize the bitcoin industry as any other. The two institutions even agree that it can be used to settle international trade.
Legislation is expected in the spring, for implementation before the end of 2024. These significant changes could have profound repercussions on the role of bitcoin in the Russian economy.
By equating the bitcoin industry with natural resource extraction, Russia could become a popular location for miners. Especially since the country has many assets to showcase in addition to a favorable legal framework.
Biriver eyes the flares
According to miner Bitriver, Russian oil companies are increasingly interested in bitcoin. It would allow them to make a profit from the gas otherwise wasted (burned via flares) because they cannot transport it to civilization.
According to calculations by Bitriver CEO Igor Runets, the bitcoin industry could recycle up to 10 billion cubic meters of gas per year. That’s about half the volume currently burned with flares each year.
Enough to potentially climb the ranking of nations in terms of hashrate. According to the estimates from the University of Cambridge, Russia would be in fifth place. Would be ahead of Canada (6.5%), Kazakhstan (13%), China (21%) and the United States (38%).
However, regulatory pressures and increasing energy costs in the United States and Kazakhstan are likely to lead to further migration. Russian analysts say Russia has what it takes to occupy up to 18% of the global hashrate.
All this must be compared with Russia’s disconnection from the SWIFT network.
The Russian president recently said he was counting on new technologies for international transactions. And in particular the โblockchainโ.
Was this a nod to bitcoin?
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