Russian Central Bank "Bitcoin mining has a positive effect on the ruble exchange rate"

The Bank of Russia acknowledged that the Bitcoin (BTC) mining industry is having a positive effect on the ruble exchange rate.

On the 22nd (local time), according to CryptoNews, a virtual asset-focused outlet, Elvira Nabiullina, Governor of the Bank of Russia, said in a question-and-answer session on the foreign exchange market, "Virtual asset mining is having a certain impact on the ruble." She explained, however, that since a large part of the mining industry operates in the informal sector, it is difficult to quantify the exact effect numerically.

The remarks came as key Russian government figures argued that virtual asset mining should be officially classified as an "export activity." Kremlin administration deputy head Maxim Oreshkin recently said at a forum that "mined digital assets, even if they do not cross borders, are value flowing in from abroad" and should be viewed as a new export item. He pointed out that ruble exchange rate forecasts are being distorted because mining-related cash flows are not being properly reflected.

According to industry estimates, Russia mines tens of thousands of bitcoins annually and, in summer, accounts for more than 16% of the world's hashrate, ranking second in the world after the United States. However, it is reported that mining output decreased after the 2024 Bitcoin halving.

Russia legalized virtual asset mining in November last year, but illegal and illicit mining still prevail due to high taxes and electricity costs. Local media reported that power theft and tax revenue losses from illegal mining amount to billions of rubles annually.

Meanwhile, Russia's financial sector is expanding the use of virtual assets as investment products, but their use as a means of payment remains prohibited. The Bank of Russia reaffirmed its previous position that "virtual assets are only an investment instrument, and domestic payments should be made only in rubles."