US Considers Nuclear Plant Stake for Crypto Mining

Russian President Vladimir Putin has confirmed that the United States is considering using a proposed stake in the Zaporizhzhia Nuclear Power Plant (ZNPP) for cryptocurrency mining. He made these comments during a recent business meeting. 

Will the US Plan Bring Peace Between the Countries?

This development introduces a new economic and technological dimension to the already complex discussions about the future of Europe’s largest nuclear facility, which Russia has controlled since 2022.

A report from the Russian business daily Kommersant states that Washington intends to utilize a possible stake in the ZNPP to support large-scale crypto mining. This is part of the ongoing peace negotiations between the U.S. and Russia. 

Reports indicate that Russia is in talks with the United States on a plan to manage the ZNPP without Ukraine’s involvement. In this plan, Russia would keep control, while the U.S. could get a share that might support crypto mining projects. However, this idea is controversial because the plant is on Ukrainian land.

Crypto Mining: No Clear conclusion Has Been Made Yet

In contrast, the BBC reported that the U.S. has suggested a shared operation for the ZNPP. The States proposed that ZNPP should be jointly operated by Russia, the U.S., and Ukraine, with equal shares for all three. This plan aims to build trust and ensure the plant operates safely and transparently.

Meanwhile, Ukraine has responded with its own suggestion for a joint venture split 50-50 between Ukraine and the U.S. In this arrangement, Ukraine would receive half of the electricity produced by the ZNPP, while the U.S. would allocate the rest. With no agreement on how to manage the ZNPP, it is unclear if any cryptocurrency mining can take place there. 

Crypto Use Following Russian-Ukraine Crisis

The sanctions placed on Russia following its invasion of Ukraine pushed many international crypto firms to stop their services in the country. This left Russians at the mercy of new, riskier exchanges that require little or no KYC information.

Recall that in 2022, the European Commission and member states agreed on the 8th wave of sanctions against Russia. Russia has since turned to cryptocurrency as a means to evade these sanctions, resulting in cryptocurrency usage for both licit and illicit purposes. The country has since changed its position on cryptocurrencies and is making provisions for trade in digital assets.

On the other hand, Ukraine enjoyed a sharp increase in crypto transactions. Most of these transactions in the form of donations were for national support and assistance programs in the wake of the war. The nation’s Minister for digital transformation believes cryptocurrencies were essential in its fight against Russia.