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Crypto in Russia: Adoption on the Rise?
More people in Russia are embracing cryptocurrency, according to leading Moscow-based academic, Evgeny Kogan, Professor of Economic Sciences at the National Research University Higher School of Economics (HSE). In recent years, interest in cryptocurrencies has surged, with an increasing number of citizens engaging in transactions involving Bitcoin and other digital tokens.
Crypto Becoming Part of Daily Life
Professor Kogan highlighted the growing integration of cryptocurrencies in daily life, noting that for some individuals, these digital assets have already become a method of payment. However, he also acknowledged the prevailing distrust among many who consider cryptocurrencies to be tools used by operators of financial pyramid schemes. Despite the rising interest, statistics indicate that less than 1% of Russians actively use digital tokens, and only 3% are familiar with the blockchain industry.
HSE’s Involvement and Proposed Solutions
The National Research University Higher School of Economics (HSE) has shown a growing interest in crypto and regulatory policy. In a recent study, HSE researchers proposed a solution to the increased strain on electricity grids from crypto miners in Siberia. Their proposal involved the enforced disconnection of crypto miners from the electrical grid for 500 hours per year to alleviate the load on the grid.
Russian Crypto Regulation: Current Status and Challenges
Despite the escalating popularity of cryptocurrencies, Russia’s regulatory framework remains largely underdeveloped. Government estimates suggest that up to 10% of the population may possess crypto assets, with western sanctions on Russia’s financial system contributing to the increased adoption of cryptocurrencies.
Rise of Crypto Mining Industry in Eastern Russia
Russia’s eastern regions have become significant players in the global crypto mining industry, owing to low electricity costs and cold winter temperatures. Additionally, some firms are utilizing cryptocurrencies as a settlements tool, particularly as domestic banks face exclusions from networks like SWIFT.
Political Promises and Pending Legislation
Despite pledges from politicians to expedite the enactment of crypto-related laws, Russian lawmakers have yet to vote on any substantial regulatory measures governing cryptocurrencies.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
