Russia's central bank wants to ban usage and mining of crypto currencies

Although cryptocurrencies like Bitcoin were now clearly established than just a few years ago, more attention also increases the skepticism - not only on the part of the public, but also in governments and governments. China was one of the first countries, the last summer dramatic measures grabbed and nationwide transactions with and mining of cryptocurrencies ban and then countless crypto farms castle.

The reason for this was in addition to the monstrous power consumption also the fear of the financial control loss had been. The Central Bank of Russia seems to have similar worries, she submitted a request a few days ago that the use and mining of cryptocurrencies also prohibit .

Reasons for the possible Krypton ban

The reasons for the prohibition request are manifold: you see crypto feeds as threat to financial stability , the well-being of citizens and control over the cash flow. Another big thorn in the eye of the Russian central bank seems to be the tremendous energy consumption, responsible for the crypto farms.

Because many computers are needed for the mining of bitcoin and other cryptocurrencies, all of which are incredibly efficient, the process is consumed with a virtually huge amount of electricity . Electricity that the citizens of the country need life for their everyday life.

To counteract these problems, the bank is of the opinion that the best solution was a spell against the mining of cryptocurrencies in Russia. Like Elizabeth Danilo, the boss of the bank's financial security, emphasized, but if you want to restrict the possession : The application we asked should be sufficient.

Whether and when the proposed prohibition becomes reality and how that influences the crypto market remains to be seen. Chinese intervention last summer may have shown effect in its own country, the international situation around Krypto-Mining had the ban but rather curved.

If one of the biggest competitors falls away, it is finally more of the cake for the others. And since Russia is to the US and Kazakhstan, according to Reuters around the third-largest country in terms of Krypto-Mining , such a ban should bother anyway.