Russia Mined 54,000 BTC ($3B) Last Year: Report

Russia’s industrial Bitcoin mining sector achieved impressive results in 2023. According to a local news outlet, the country mined 54,000 BTC, valued at approximately $3 billion.

This achievement has solidified the country’s position as one of the top global players in the Bitcoin mining industry, attracting local and international investors.

Impact on the Country’s Economy

The Bitcoin mining activities contributed significantly to the country’s tax revenue. According to Sergey Bezdelov, Director of Russia’s Industrial Mining Association, this impressive milestone generated approximately 50 billion rubles ($556 million) in taxes for the Russian government.

Furthermore, Bezdelov shared his expectations that the recent legalization of crypto mining in Russia will attract more investors and increase tax revenue.

Last month, Russian President Vladimir Putin signed a law legalizing crypto mining in the country. This move established crypto mining as a legitimate economic activity where legal entities can participate with proper registration or within certain energy consumption limits.

Market observers noted that the mining legalization indicates that the nation’s authorities are turning to alternative payment systems, like crypto payments, to circumvent Western economic sanctions and reduce the dependence on the U.S. dollar for international settlements.

Russia’s Shift Towards Crypto

Previously, Russia held a skeptical view of cryptocurrencies, resulting in a ban on the use of digital assets in the country. However, as technological trends evolve and institutions adopt Bitcoin, the country’s attitude toward cryptocurrencies has shifted to a friendlier one.

Notably, the Russian government’s earlier moves to formalize and regulate the mining industry have made the sector more appealing to institutional players.

In an earlier report, the country shared plans to set up two crypto exchanges in Moscow and St. Petersburg. These exchanges will serve as hubs for international trade and are part of a broader strategy to enhance economic cooperation with BRICS nations.

Russia’s latest achievement reflects the country’s growing involvement in the cryptocurrency industry. Its crypto strategy is evolving as both a financial and geopolitical tool.