FX168 Financial News Agency (Asia Pacific) reported that Fred Thiel, CEO of Marathon Digital, a US cryptocurrency mining company, said that Bitcoin mining is a national security issue. Russia mined 54,000 Bitcoins under US sanctions, and the country's President Putin's government received $556 million in taxes. He warned that if the United States does not have enough domestic mining, then US dollar Bitcoin holders may be "excluded" from the transaction.
On Tuesday (September 10), at the HC Wainwright & Co. event held at the Lotte New York Palace Hotel, a group of cryptocurrency executives joined a Bitcoin mining panel hosted by Anthony Scaramucci to discuss the future of the cryptocurrency industry and Bitcoin.
Thiel pointed out: "Bitcoin is a national security issue for the United States."
Read more: Russia Seizes 238 Machines in Crackdown on Illegal Mining Activities
He stressed that Russia has become the world's second-largest bitcoin miner. He warned: "If the United States does not have a large number of local bitcoin miners, they may be shut out and American companies may not be able to conduct bitcoin transactions."
Source: AMB Crypto
He further reiterated that "strategic ownership of block space involves national security issues" as Russia is catching up quickly.
He previously wrote that Bitcoin is a national security issue and cited a recent report from local media Izvestia. According to reports, Sergey Bezdelov, president of the Russian Industrial Mining Association, said that Russian miners mined a total of 54,000 Bitcoins in 2023, worth about $3 billion.
The report further noted that the aforementioned mining activities brought the Russian government about 50 billion rubles, or about $556 million in tax revenue.
During Tuesday’s panel discussion, Thiel further insisted that the United States “must maintain its leading position, not only in Bitcoin mining, but also in terms of Bitcoin assets held by American companies.”
Thiel’s warning and urgent call comes days after Putin’s government announced plans to use cryptocurrencies for international transactions as Russia faces growing economic sanctions following the Russo-Ukrainian conflict.
Read more: Russian crypto mining mint approximately 54,000 Bitcoins in 2024 due to cheap electricity and favorable geographical environment
Russian Finance Minister Anton Siluanov said in mid-August that authorities are “looking for ways to legalize cryptocurrency trading.” Observers believe this is more than just a copycat move, as more countries are beginning to accept Bitcoin and cryptocurrencies, such as El Salvador.
Rather, Russia is jumping on the cryptocurrency bandwagon to mitigate the impact of sanctions, while also allowing it to participate in a global revolution that aims to transform the traditional financial system.
Russia is not the only country grappling with the challenges of sanctions, which have begun to affect the local economy. In May, an Iranian official revealed that Iran and Russia are exploring potential use cases for central bank digital currencies (CBDCs) and digital financial assets (DFAs) in cross-border transactions.
Like Russia, Iran is also facing a slew of sanctions from around the world. Iran has its own crypto rial, while Russia has the digital ruble. Whether the sanctioned country’s plans will be successful remains to be seen.
Meanwhile, the United States remains the leader in Bitcoin mining. On the other hand, countries such as Africa are also becoming a melting pot for miners due to less stringent regulations and lower electricity costs.
