The head of Dagestan, Sergei Melikov, proposed introducing a ban on cryptocurrency mining in the republic.
In his address to federal authorities, he stressed that such measures are necessary until the energy supply situation stabilizes.
Melikov stated that mining leads to electricity shortages and power grid failures.
Over the past year, electricity consumption in Dagestan has increased by 8 percent, and over three years – by 26 percent.
At the same time, the wear and tear of energy networks in the region exceeded the average indicators for Russia, as emphasized in a statement from the press service of the Administration of the Head of the Republic of Dagestan.
Operating mining farms exacerbate the problem of outages and power outages, putting additional strain on the region's overburdened power grid.
The government may consider a complete ban on mining in Dagestan and other regions until 2031.
Uncontrolled growth in electricity consumption for cryptocurrency mining is contributing to power shortages in certain regions.
Almost 1.5 percent of the country's total electricity consumption is spent annually on these purposes, and the figure continues to grow.
