The St. Petersburg International Economic Forum, held on June 6, highlighted the growing crypto mining sector in Russia. The event focused on discussions surrounding crypto mining and the use of cryptocurrencies in international payments, with industry leaders noting that Russia’s mining sector is predominantly focused on mining Bitcoin with some miners also mining tokens like Litecoin. Government officials including Valery Seleznev and Ivan Chebeskov spoke at the event, as well as prominent figures in the crypto mining industry such as Sergey Bezdelov and Igor Runets. The meeting indicated that Moscow may be considering legalizing and regulating the industrial crypto mining sector.
Participants at the forum also discussed potential financial incentives for miners to attract investments, as Russian firms are still hesitant to back mining companies due to regulatory uncertainties. Talks about the possible emergence of exchange-traded instruments in the Russian market were also discussed. The Industrial Mining Association estimates that industrial miners have a combined 1.5 GW of computing power, with the industry worth over $225 million in 2023. Miners claim that industrial data centers with a capacity of 10 MW or more represent more than half of the market.
The event also focused on the digital ruble, Russia’s Central Bank Digital Currency (CBDC), which is set to revolutionize cross-border payments. Anatoly Aksakov, the Chairman of the State Duma Committee on Financial Markets, mentioned that the first international settlements with the digital ruble could take place in the second half of 2025, with settlements in national digital currencies becoming common practice by 2029. Officials highlighted that CBDC operations would not be subject to sanctions or bans from third countries, making them ideal for cross-border transactions. The digital ruble project was initially announced in 2017 and has been a key focus at the SPIEF meetings.
The SPIEF event has become a showcase for the children of the Kremlin elite, with Vladimir Putin turning his native St. Petersburg into the heart of power during the forum. Media representatives, bank officials, and industry leaders attended the session on crypto mining and international payments, signaling a growing interest in this sector in Russia. The government’s willingness to engage in discussions with mining chiefs indicates a potential shift towards legalizing and regulating the industrial crypto mining sector. Talks about potential financial incentives and investment opportunities for miners also suggest a growing recognition of the importance of the crypto mining industry in Russia’s economic landscape.
Overall, SPIEF 2024 has showcased Russia’s growing interest in crypto mining, digital currencies, and cross-border payments. The event highlighted the potential for the industrial crypto mining sector in Russia, with discussions around regulatory matters and investment opportunities for miners. The focus on the digital ruble and its role in facilitating international settlements underscores Russia’s commitment to embracing digital financial technologies to drive economic growth. As discussions continue at SPIEF, it is evident that the Russian government and financial sector are actively engaging with industry leaders to shape the future of crypto mining and digital currencies in the country.
