Russia has proposed a ban on the mining and use of cryptocurrencies in the country, with the central bank citing digital currencies as a “threat to financial stability, monetary policy and its citizens’ wellbeing”.
If the proposed plans go ahead, it will become the latest nation that has implemented a ban on cryptocurrency alongside China, Egypt and Iraq.
Russia has historically been against the use of cryptocurrencies before surprisingly giving them legal status in 2020, although it remained banned as a method of payment.
The central bank said in its report that the digital coins often carried characteristics of a financial pyramid that were a threat to financial stability.
As part of the proposed ban, institutions would be blocked from performing operations with cryptocurrencies, as well as a ban on crypto exchanges.
There would also be a clamping down on mining.
Russia is currently the third largest bitcoin mining nation in the world behind the US and Kazakhstan.
The amount of energy needed to power the computers created fears over energy consumption, said the Bank of Russia.