Russia's Central Bank Acknowledges Bitcoin Mining's Role in Strengthening the Ruble

The Central Bank of Russia has recognized that Bitcoin mining is playing a role in bolstering the value of the ruble, though determining its exact influence remains challenging due to the industry's operation in gray areas.

Key Takeaways

Russia's Central Bank acknowledges Bitcoin mining's contribution to the ruble's strength.
Deputy Chief of Staff Maxim Oreshkin advocates for recognizing crypto mining as an export activity.
Legalization of crypto mining has not eliminated illegal activities costing the nation millions.
Despite advancements in blockchain, payment bans for cryptocurrencies remain in effect.

Russia's Central Bank Says Bitcoin Mining Is Strengthening the Ruble

Governor Elvira Nabiullina made this observation while addressing inquiries regarding the sector's impact on foreign exchange markets, as reported by local media.

This acknowledgment comes at a time when high-ranking Kremlin officials are advocating for the formal classification of mining as an export activity in Russia’s trade accounts. This push underscores the increasing significance of the mining sector to the national economy, even amidst ongoing regulatory uncertainties.

Governor Elvira Nabiullina

Mining’s Growing Role as an Export Driver

During the VTB “Russia Calling!” forum, Deputy Chief of Staff Maxim Oreshkin stated that the treatment of crypto mining as an export activity is warranted since mined digital assets effectively exit Russia, even if they don’t physically cross borders.

Oreshkin referred to mining as “a new export item” that Russia is “not valuing properly,” arguing that the financial flows associated with mining are often underestimated, leading to inaccurate ruble exchange rate predictions.

Industry estimates suggest that Russia generates tens of thousands of Bitcoins each year, with daily earnings from mining reaching around one billion rubles.

According to the Industrial Mining Association, Russia ranks second globally in terms of mining, contributing over 16% of the world’s hashrate during the summer months. However, the recent network halving has reduced the output from approximately 55,000 BTC in 2023 to about 35,000 BTC in 2024.

Nabiullina acknowledged the impact of mining on currency markets but stressed that it is difficult to quantify its effect currently, noting that a substantial amount of mining activity remains unregulated. She mentioned that “this mining didn’t start this year, meaning the appreciation of the exchange rate cannot solely be attributed to its recent increase.“

Illegal Mining Operations Financially Impacting the Economy

Crypto mining became legal in Russia on November 1, 2024, requiring businesses and entrepreneurs to register with the Federal Tax Service. Individual miners using less than 6,000 kWh per month are exempt from this requirement.

Corporate miners face a 25% tax, while individuals pay progressive rates between 13% and 22%, with non-residents being taxed at 30%.

Despite these legalization efforts, illegal and semi-legal mining activities continue, costing the nation millions each year due to electricity theft and unpaid taxes.

According to broadcaster Ren TV, the fear of high taxes and electricity fees is driving many miners underground, resulting in annual losses to the budget that reach billions of rubles. Reports indicate that operators often resort to meter manipulation, bribery, and secret agreements with utility staff.

Illegal Crypto Mining Facility

Recent investigations have unveiled extensive theft, such as a St. Petersburg operator who evaded meters since 2018, costing the power grid half a billion rubles and a hidden mining operation in Dagestan using concealed coolant tanks for power.

One employee from a power supply company remarked on the scale of these illegal mining endeavors, stating, “The illegal crypto mining farm used more energy than a whole five-story building.”

Police have also arrested a worker from Omsk Thermal Power Plant for accepting 500,000 rubles in bribes to help facilitate grid theft.

Traditional Banks Explore Digital Assets Amid Payment Restrictions

Sberbank, the largest bank in Russia, is exploring decentralized finance tools and has begun offering regulated crypto-linked investments totaling 1.5 billion rubles in structured bonds and digital financial assets tied to Bitcoin, Ethereum, and broader crypto portfolios.

Deputy Chairman Anatoly Popov confirmed that the bank is in active discussions with the Bank of Russia and Rosfinmonitoring to incorporate crypto services within regulated frameworks while developing its blockchain infrastructure.

Despite the advancements in these areas, State Duma Committee Chairman Anatoly Aksakov reiterated the country’s strict ban on cryptocurrency payments, stating during a TASS press conference: “We need to recognize that cryptocurrencies will never become money in this country.”

“They will solely serve as an investment instrument. Payments will only be conducted in rubles,” he added.

Central Bank Governor Nabiullina has persistently advocated for prohibitions on crypto exchanges and token trading, despite Russia witnessing $376.3 billion in incoming transactions between July 2024 and June 2025.

First Deputy Chairman Vladimir Chistyukhin emphasized the need for immediate regulatory measures, insisting that laws governing cryptocurrency transactions “must be enacted without delay.”

Nonetheless, the Central Bank also supports tokenization initiatives that could allow foreign investors to access shares in Russian companies as a potential strategy to navigate sanctions.