Russia legalizes Bitcoin and cryptocurrency mining

Vince Quill4 hours agoRussia legalizes Bitcoin and cryptocurrency miningRussia explores other forms of international trade settlement following US sanctions blocking it from the SWIFT interbank messaging system.3291 Total views23 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onRussian President Vladimir Putin approved legislation to reduce its reliance on the United States dollar in international trade.

The law will take effect in November 2024 and allow approved mining firms to register through a state database to mine crypto. Small, individual miners can also mine digital currency without officially registering if their energy consumption remains below a certain threshold.

Oversight of the newly legalized mining industry will be split between the Bank of Russia, the Ministry of Finance and a select cabinet of ministers within the Russian government, who will establish more precise regulatory requirements over the coming months. The bill also introduced a ban on mass cryptocurrency advertising inside Russia.Source: Ki Young JuBRICS and de-dollarization efforts

BRICS — Brazil, Russia, India, China and South Africa — is a growing collection of emerging economies that are increasingly seeking to diminish reliance on the US dollar for international trade.

Related: Mainland China to ‘unban’ Bitcoin? Community says ‘unlikely’

The BRICS bloc first introduced the idea of an alternative digital currency at the 11th annual BRICS Summit in 2019, a proposal that has garnered widespread attention yet faces significant hurdles, including disagreements between leading member states on how a unified currency would work.BRICS GDP vs G7 GDP in 2023. Source: Anthony Pompliano

In 2023, Russia renewed its focus on developing a unified BRICS currency, with State Duma Deputy Chairman Alexander Babakov reportedly claiming that the leading members of the emerging economic bloc were working on developing a new currency for international trade settlement.

Shortly after Babakov made his statements, the Bank of Russia and the Russian government announced plans to set up special entities to use digital assets as a method of cross-border settlement.Criticisms of the BRICS ambitions

Macroeconomist Lyn Alden expressed doubt that a unified BRICS currency backed by gold would dethrone the US dollar.

In a statement to Cointelegraph, the economist pointed to the age-old problem with gold-backed paper currencies tending to issue far more paper, or claims on the underlying gold, relative to the actual supply of gold held in reserves. This could lead to monetary debasement and, eventually, the collapse of the currency.

Magazine: ‘Crypto is inevitable’ so we went ‘all in’: Meet Vance Spencer, permabull# Bitcoin# Blockchain# Bank of Russia# Russia# Mining# Adoption# Bitcoin Mining# RegulationAdd reaction