Blockchain, Cryptocurrencies and Mining: New Economic Challenges and Opportunities

The international economic landscape shifted significantly in 2022. Sanctions have given rise to a host of restrictions regarding settlements under foreign trade contracts which employ traditional payment systems and tools. A need arose to diversify ways of making international settlements. One option in this regard is the use of cryptocurrencies. They are universal, well-known, and the infrastructure is in place to use it throughout the world. Many states are currently creating a regulatory environment to govern their use. However, it is currently not homogeneous in the least. In Russia, an industry based on the turnover of cryptocurrencies has taken shape. It encompasses investments, stock trading, cryptocurrency mining, and international settlements. Indeed, turnover of cryptocurrency among Russian users has reached significant figures. At the same time, uncertainty in how cryptocurrency will be regulated in the country has meant that foreign digital platforms are primarily used. Cryptocurrencies may still be exotic, but they are also understandable tools. This market, together with distributed ledgers used as their technological platform, have become interesting not only to enthusiasts, but also to institutional players, including Russian banks and exchanges. It is a market which is developing in tandem with related industries, including information technology – a field which enjoys priority government support. The development of the crypto market will not undermine, but rather expand and strengthen the financial sovereignty of the state. It is therefore important that instead of banning it, the government helps develop and foster it. What can be done to regulate cryptocurrencies in a consistent manner, with an emphasis on optionality? How can a balance be struck between the interests of the state and market players when it comes to government regulation of cryptocurrencies?