The strengthening of the ruble against foreign currencies was attributed to digital asset mining in Russia.
Maxim Oreshkin, Deputy Chief of Staff of the Executive Office of Russian President Vladimir Putin, became the first high-ranking official to report a link between cryptocurrency mining and the strengthening of the Russian national currency.
He explained this phenomenon by saying that digital asset mining has effectively become a source of funds that can be used to pay for imported goods. This means that the influx of digital assets resulting from mining reduces demand for foreign currency in Russia and thus positively impacts the ruble exchange rate.
The head of the Bank of Russia, Elvira Nabiullina, admitted that mining cryptocurrency contributes to the strengthening of the national currency, but she declined to assess the extent of this impact. According to Nabiullina, along with this factor, tight monetary policy and the fiscal rule, designed to stabilize the economy through income redistribution, are also contributing to the ruble’s appreciation.
Nabiullina
The Yakut government recently announced plans to begin mining digital assets at the remote Ulugur and Ergedzhey gas fields, from which it is economically impractical to export energy resources.
If this project is implemented, cryptocurrency mining in Russia will increase, which will support the ruble exchange rate. However, mining in Yakutia will be launched in two years at best, as the gas reserves are planned to be fully operational by the end of 2027.