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The meeting was attended by Prime Minister Mikhail Mishustin, Chief of Staff of the Presidential Executive Office Anton Vaino, Deputy Prime Minister and Chief of the Government Staff Dmitry Grigorenko, Deputy Prime Minister Alexander Novak, Presidential Aide Maxim Oreshkin, Aide to the President – Head of the Presidential State-Legal Directorate Larisa Brychyova, Minister of Economic Development Maxim Reshetnikov, Finance Minister Anton Siluanov, Energy Minister Sergei Tsivilyov, Minister of Digital Development, Communications and Mass Media Maksut Shadayev, Director of the Federal Security Service Alexander Bortnikov, Director of the Federal Service for Financial Monitoring Yury Chikhanchin, and Head of the Federal Antimonopoly Service Maxim Shaskolsky.

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Opening remarks at the meeting on economic issues

President of Russia Vladimir Putin: Good afternoon, colleagues.

Today I suggest discussing the development of digital technologies in financing, and more specifically, introduction and use of digital currencies and other assets.

This is a truly dynamic and promising area in today’s economy, which is growing more popular among businesses, investors, and people almost everywhere in the world. These technologies are already beginning to change the usual patterns in trade, banking, services, and international payments.

It is important for Russia not to miss the moment, set up the legal framework and regulation in a timely manner, develop infrastructure, and create conditions for the circulation of digital assets, both within the country and in relations with foreign partners.

We have already made significant progress in this area, and I hope that today our colleagues will report on current results and future plans. Meanwhile, I propose focusing on issues that require special attention and additional solutions.

I will begin with the pilot project the Central Bank launched last August. I mean a trial use of the digital ruble. In fact, this is another form of our national currency. Its feature is that both individuals and businesses can use the digital ruble regardless of which bank they have an account with.

Twelve banks, 600 individuals, and 22 trade and service enterprises from 11 cities are taking part in the project. As of July 1, more than 27,000 transfers and over 7,000 payments for goods and services have already been made in this system. In fact, the digital ruble platform has demonstrated its performance and functionality under the pilot project.

Now we have to take the next step: to move to a wider introduction of the digital ruble in the economy and financing sector. I hope that we will discuss this topic in detail today.

Another issue is about cryptocurrencies. These are not monetary units in the usual sense, but are increasingly used in the world as a means of payment in international transactions.

In fact, cryptocurrencies can be mined almost in any point on the planet, but the mining requires a lot of electricity.

According to the Ministry of Energy, Russia annually spends 16 billion kilowatt-hours for these purposes, that is, almost 1.5 percent of the total electricity consumption in the country. The number continues to grow.

The growth factors are understandable. These include relatively low prices for electricity and the mobility of equipment for mining cryptocurrencies among other things.

But what should attract our attention and raise our alarm here? Uncontrollable growth in electricity consumption to mine cryptocurrencies can result in a power shortage in certain regions. This is already notable in the Irkutsk Region, Buryatia, and Trans-Baikal Territory.

The issue is, in fact, quite acute and fraught with serious consequences for enterprises, housing and communal services systems, and certain cities and towns. Our colleagues from the regions directly raise their concerns about this.

I agree with them. It is clear that if there is no free power, if it is used by mining farms, then new enterprises, residential areas, and social facilities will have to face interruptions in supplies, and electricity shortages; and promising investment and infrastructure projects will be put on pause.

Correct and timely decisions must be made, including systemic ones, at the level of the federal law.

I have already given instructions on regulating the mining of cryptocurrencies in Russia, including taxation and tariff solutions of these activities. Let us discuss today what has been done and how we should build this work in the future.

Let us begin the discussion.

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