Sanctions or a catalyst for the legalization of Russian Bitcoin mining?

Since Western countries have gradually implemented sanctions to Russia, many people are discussing whether encrypted currencies can relieve stress. Although some people argue that they can be wound as sanctions, but some people think that this will be useless. Because rubles are not much, the sanctions are not completely isolated in Russia.

Director David Carlisle, the Policy and Regulatory Affairs Director of Elliptic, believes that the next step of Russia to avoid sanctions may be the investment mining industry. He said: “For the Russian government or some sanctions, it is not difficult for a way to dig ore as a Bitcoin. They can be converted to goods and services, or just cash.”

Although the Russian Bank proposed a proposal for the prohibition of mining and transactions, it is reported that President Putin does not agree, but supports encryption mining. In addition, considering the energy resources owned by Russia, will the Bitcoin mining become shortcuts bypass sanctions?

Bitcoin mining map as of August 2021

Many countries have been investing in mining. According to the data of the Cambridge University, Russia follows the United States and Kazakhstan in Bitcoin mining, providing 11.23% of Bitcoin total. The top 8 countries are:

1. US $ 35.4%

2. Kazakhstan accounts for 18.1%

3. Russia accounted for 11.23%

4. Canada accounts for 9.55%

5. Ireland accounts for 4.68%

6. Malaysia accounted for 4.59%

7. Germany accounts for 4.48%

8. Iran is 3.11%

On the other hand, Bloomberg believes that increasing the existing mining capacity of Russia does not benefit their resistance to sanctions. Despite Russia’s rich energy, considering the scale of Russian financial markets and economy, the country may not be able to exploit enough Bitcoin to bring considerable financial impacts for their economies.