Categories: Market

Russia will step up cryptocurrency mining to avoid double sanctions?

Ever since sanctions were imposed on Russia, many have debated the possibility that cryptocurrencies could offer a way out for the Eastern European country. While some believe they can use cryptocurrencies to avoid sanctions, others argue that it will be futile as ruble transactions are rare and sanctions will be imposed.

David Carlisle, director of policy and regulatory affairs at blockchain analytics firm Elliptic, argued that Russia’s next step in evading sanctions could be to invest in mining:

“It shouldn’t be difficult for the Russian government or certain sanctioned institutions to consider mining as a way to access Bitcoin. They can be converted into goods and services or just cash.”

Although the Central Bank of Russia has stated its position with the proposal to ban mining and trading, President Putin disagrees and supports cryptocurrency mining. Given the energies Russa has, does bitcoin mining offer an easy way around sanctions?

Bitcoin mining card. Source: ccaf.io

Many countries have continued to invest in mining. According to Cambridge University’s Center for Alternative Finance, Russia lags behind the United States and Kazakhstan in bitcoin mining, generating 11.23% of all bitcoins. The top 8 countries in the ranking are:

  • United States with 35.4%
  • Kazakhstan with 18.1%
  • Russia with 11.23%
  • Canada with 9.55%
  • Ireland with 4.68%
  • Malaysia with 4.59%
  • Germany with 4.48%
  • Iran with 3.11%

Bloomberg believes that increasing Russia’s existing mining capacity will not benefit them from sanctions. Although the country is rich in energy, given the size of Russia’s financial markets and its economy, the country will not be able to mine enough Bitcoin to make a significant financial difference to its economy.

Join Bitcoin Magazine Telegram to follow news and comment on this article: https://t.me/coincunews

annie

According to Cryptoslate

Follow the Youtube Channel | Subscribe to the Telegram channel | Follow the Facebook page

CoinX

Recent Posts

USDC and CCTP to launch on Aptos, with Stripe adding Aptos support in crypto products

Palo Alto, California, 21st November 2024, Chainwire

1 hour ago

Best Cryptos to Buy: Qubetics Set to Rise, Bitcoin Knocks at $100k Milestone, Avalanche to Release 1.67M Tokens

Best Cryptos to Buy: Qubetics presale rockets ahead, Bitcoin nears $100k, and Avalanche prepares to…

2 hours ago

Ike Goes Live on Mainnet: Unlocking Liquid Staking on Aleph Zero

London, United Kingdom, 21st November 2024, Chainwire

2 hours ago

Native USDC on Aptos Coming Soon to Boost DeFi and P2P Transactions

The move will see developers utilize USDC on Aptos in creating dApps on a wide…

3 hours ago

Coinshift Launches csUSDL, Announces Strategic Partnerships

Abu Dhabi, UAE, 21st November 2024, Chainwire

3 hours ago

Strategic Bitcoin Reserve Driven by 5-Year Commitment to Buy BTC

Senator Cynthia Lummis outlined the Strategic Bitcoin Reserve, which will sell part of the Fed's…

3 hours ago

This website uses cookies.