IMF called the method of circumventing sanctions using mining

According to experts, governments will be able to generate income from the use of energy resources

20.04.2022 - 10:20

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What’s new? The experts at the International Monetary Fund (IMF) believe that sanctioned countries will devote more resources to circumventing restrictions with mining cryptocurrencies. The relevant findings have been published in the “Global financial stability report.”

The full version of the IMF’s report

What other findings are contained in the report? The IMF said that mining on energy-intensive blockchains such as bitcoin will allow countries to monetize energy resources whose exports will be blocked due to sanctions. In addition, miners will be able to generate income directly from cryptocurrency users who pay transaction fees. The IMF believes that such miners will be the governments of sanctioned countries. The average monthly mining revenue in 2021 was $1,4 billion, of which Russian miners may have received about 11% and Iranian miners 3%.

What had happened before? In early April, the Ministry of Industry and Trade and the Ministry of Construction proposed to establish an experimental regime to regulate mining. The “regulatory sandbox” regime is aimed at mining digital currencies using computing facilities hosted by thermal generation facilities.

On April 15, the First Deputy Governor of the Bank of Russia Ksenia Yudaeva stated that opportunities to circumvent sanctions with cryptocurrencies are limited. According to her, the Central Bank remains wary of digital assets. The department is concerned about their increased volatility, the ability to “infect” the financial system, and a possible threat to consumer rights.

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