Putin Warns Bitcoin Mining Could Cause Power Shortages in Russia
![Putin Warns Bitcoin Mining Could Cause Power Shortages in Russia](https://coinspress.com/wp-content/uploads/2023/03/mining-btc-tokens-915x600.webp)
Russian President Vladimir Putin has raised alarms about the unchecked growth of Bitcoin mining in Russia, warning it could lead to significant power shortages.
In a recent discussion with senior officials, Putin expressed concerns that the surge in mining activity might overwhelm the country’s power supply, leading to outages in several regions.
Bitcoin mining, known for its high energy consumption, currently uses around 16 billion kilowatt-hours per year in Russia, which constitutes about 1.5% of the nation’s total electricity. The low cost of electricity and easy access to mining hardware have contributed to this rapid increase.
READ MORE: Ripple Exits Major Investments Amid Legal Battles
Despite stringent cryptocurrency laws, Russia became the second-largest Bitcoin mining center globally in 2023. This rise has heightened anxieties among regional leaders, particularly in areas like Dagestan, where outdated infrastructure has already led to frequent power cuts.
Putin has called for new regulations to manage the mining boom and prevent potential disruptions to electricity supply, emphasizing the need for federal oversight to safeguard against future energy crises. This move comes amidst recent power shortages exacerbated by issues at the Rostov nuclear power plant, illustrating the urgent need for regulatory measures in the face of growing mining activities.