The Central Bank of Russia is discussing the issue of cryptocurrency mining with the government. This was stated by Central Bank Governor Elvira Nabiullina.

He noted that a “systemic decision” on mining must be made – if approved, “there are no borders, a sandbox will not be necessary.”

The head of the regulator emphasized that mining is not under the direct authority of the central bank, but the Central Bank expressed its concerns:

“It is one thing if mining is done and cryptocurrencies go to currency exchanges, but it is another thing if it is being used as a means of payment within “mined” Russia. In fact, it will be a money surrogate. We are voicing these concerns in order not to disturb the circulation of money.”

Recall that the Central Bank is a consistent competitor of cryptocurrencies and has proposed to impose a complete ban on issuance, circulation and exchange, as well as the organization of such operations on the territory of the Russian Federation.

The government wants to regulate the market and for this purpose, it has prepared a bill “On Digital Currency”. It includes conducting transactions with cryptocurrencies through Russian banks, identifying crypto wallet holders and segregating investors by qualification.

The document explained the definition of mining and the basic mechanisms for its regulation. Recently, the Ministry of Finance clarified the terminology related to cryptocurrency mining in the bill.