In a recent decision, Russian President Vladimir Putin signed new legislation on August 8 that legalizes the mining of Bitcoin and other cryptocurrencies in the country. The move aims to reduce Russia’s dependence on the U.S. dollar for international trade transactions.
The new legislation will come into force from November 2024, and will establish a system by which authorized mining companies will be able to register through a state database.
In addition, small individual miners will also have the possibility to mine cryptocurrencies without the need for official registration. However, energy consumption must remain within a set limit.
Regulation and supervision of the now legalized mining industry will be handled by a combination of authorities. These include the Bank of Russia, the Ministry of Finance and a select group of Russian government ministers.
In the coming months, they will define more detailed regulatory requirements for the sector. Additionally, the new legislation imposes a ban on mass advertising of cryptocurrencies within Russian territory.
JUST IN: 🇷🇺 Vladimir Putin signs law legalizing cryptocurrency mining in Russia. pic.twitter.com/4JTUdutXV3
— Watcher.Guru (@WatcherGuru) August 8, 2024
BRICS also tries to lose dependence on the US dollar
BRICS, an acronym for Brazil, Russia, India, China and South Africa, represents a group of emerging economies. In short, the group is seeking to reduce its dependence on the US dollar in international trade transactions.
This coalition of emerging countries introduced the idea of creating an alternative digital currency during the 11th Annual BRICS Summit in 2019.
The proposal, which has attracted global attention, faces several challenges, however. These include disagreements among the most influential member states over the operationalization of a unified currency.
In 2023, Russia stepped up its efforts to advance the creation of this unified BRICS currency. Alexander Babakov, Deputy Chairman of the Russian State Duma, indicated that the leading nations of the bloc were actively collaborating on the development of a new currency intended for settlement of international trade.
Shortly after Babakov’s remarks, the Bank of Russia, together with the country’s government, announced its intention to establish special entities. These would use digital assets as a method for cross-border transactions.
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