The ban on Bitcoin mining imposed by the Russian government has had a positive impact on the Siberian region, helping to reduce the load on the power grid and avoid the risk of widespread blackouts. The Russian Energy Ministry said the ban was important in preserving the region's outdated energy infrastructure.

Impact of the Ban on the Power Grid

According to the TASS news agency, the Russian Energy Ministry confirmed that the Bitcoin mining ban has helped reduce the load on the Siberian power grid by more than 300 MW. Thanks to that, the region has avoided rolling blackouts, ensuring a stable power supply for residents, especially in harsh winter conditions with temperatures often below zero degrees Celsius.

To better control cryptocurrency mining, the Energy Ministry has proposed creating a catalog of mining equipment that will help accurately track mining capacity and its impact on the power system.

Power Outage Risk and Government Response

Siberia is one of Russia's poorest regions and faced severe energy shortages last year. In response, Governor Igor Kobzev issued a decree requiring the development of a plan to deal with the risk of widespread power outages and increased checks on the readiness of rescue forces.

Russia's cryptocurrency mining ban does not only apply to Siberia, but also affects 13 other regions. In regions such as Dagestan, Ingushetia, North Ossetia, Chechnya, Donetsk and Lugansk, the ban will be effective from January 1, 2025 to March 15, 2025. Meanwhile, the Irkutsk, Buryatia and Zabaykalye regions of Siberia will only be restricted from mining during the peak energy consumption period from November 15 to March 15.

Energy Priority Policy

Russian officials have stressed that while cryptocurrency mining is an important industry, energy resources should be prioritized for other essential needs. Deputy Prime Minister Alexander Novak said the restrictions will help ensure electricity for social facilities and businesses under construction, before being allocated to cryptocurrency mining activities.

The ban reflects the Russian government's stance on balancing the need to develop the cryptocurrency industry with the need to ensure the stability of the national power system.