Digital Ruble Bill Introduced In Russian Parliament As Country Plans New Power Plants

A government official said that the position of the Ministry of Energy has always been based on the need to create working conditions for mining.

A fresh draft on the digital ruble has been submitted to the lower house of the Russian parliament, the Duma. The draft bill contains new rules and regulations about the kind of national fiat that will be issued. The introductory bill also includes a range of legal acts and changes that will be needed to ensure its implementation. A team of Russian lawmakers, headed by the Financial Market Committee's Chair Anatoly Aksakov, has submitted the draft of the bill on the digital ruble, which is Russia's central bank dgital currency (CBDC) managed by the country's monetary authority. According to a report by Bitcoin.com, this is being done to facilitate the amendments required to ensure the conditions needed for the introduction of the digital ruble.

The media reported that the primary purpose of the bill is to establish all the necessary payment infrastructure for the digital ruble in Russia. It is expected to result in fast, convenient, and low-cost money transfers to citizens and business operations. The bill is also aimed at changing multiple existing rules and laws on the national payment system.

Lawmakers in the Duma will also make and add suitable definitions related to the CBDC. The new provision will also mandate the Bank of Russia to manage its role of being the sole operator of the CBDC platform. It also includes procedures regarding opening wallets for the digital ruble and how to access the platform.

Russia's "Currency Regulation and Currency Control" law will witness changes aimed at securing the status of the digital ruble as a currency. It will also define CBDCs issued by the country's central banks of foreign countries as foreign currencies.

Amendments to the federal law on "Personal Data" will allow the country's central bank to carry on with personal information even without asking for consent. It will not even issue any advance notification as it will be mandated with the duty to protect personal data rights.

Russia's Central Bank announced the concept regarding its digital currency in October 2020, a prototype platform of which was finalised in December 2021. In May 2022, authorities announced their plans to initiate the tests by conducting transactions in April 2023. After the increased western sanctions on the country in June 2022, the country accelerated the process of this initiative.

Meanwhile, Russia is also planning to build new power plants in Siberia after high energy demands from miners in the country.

Russian Minister of Energy, Nikolay Shulginov, has said that increasing electricity consumption due to crypto mining requires the establishment of new power plants. He said this as the demand continues to grow in residential regions too. The plants will be set up in Siberia due to the industry's rapid expansion due to immense energy pressure on other grids in the Republic of Khakassia and Irkutsk Oblast.

Shulginov has not commented on specific plans for the move. According to Bitcoin.com, a government official said, "The position of the Ministry of Energy has always been based on the need to create working conditions for mining."

Commenting on the high demand for energy consumption, Shuginov told Russa-24 TV, "As for industrial mining, it is also growing, mainly in regions where the tariff is low. In these regions, we are seeing significant consumption growth, which we must take into account."

Russia has been witnessing a rapid expansion of crypto mining. This is because of low-cost energy resources and the cool climate in the region. A study estimates an increase in Bitcoin mining revenue by 18 percent in Russia.

Russia's Deputy Energy Minister Pavel Snikkars commented in December 2022 that the industry is expected to witness a two-fold increase in power consumption in comparison to 2022.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.