Russian Government Is Working On A Project That Will Attract Cryptocurrency Mining Operations

Plenty of energy and a chilly environment are among the attractions for Chinese mining operators fleeing persecution in China. As China’s cryptocurrency mining migration continues unabated, neighboring Moscow beckons.

The Russian Organization of digital currency economics, AI, and Blockchain announced that it was collaborating with government officials to establish an initiative to recruit digital asset mining companies to the country.

According to RACIB, Moscow has plenty of surplus power, accounting for more than half of the nation’s installed producing capacity in certain areas. Its chilly temperature and excellent levels of power conservation would further contribute to Russia’s attractiveness among cryptocurrency miners, according to the announcement.

Russia’s renewable sources may also be appealing. One amongst various organization’s workgroups has been focusing on an ecomining initiative to create mining operations fueled by green energy.

According to RACIB, the task force is looking at new power generation like wind power in complement to hydroelectric and nuclear, which account for around 40 percent of the nation’s energy supply mix.

The decision by the organization comes amid China extend to tighten up its belt on its cryptocurrency mining industry. Only the previous week, a domestic news channel in the Anhui claimed that the Anhui administration was organizing a massive anti-crypto mining operation.

Anhui’s crackdown on cryptocurrency mining could generally follow crackdowns in other parts of China, notably previous Bitcoin hotspots Mongolia. Qinghai, Xinjiang, Sichuan, and Yunnan.

Many Big miners have already set their sights on Russia. The9 Ltd, a Nasdaq-listed online video game company located in China that shifted its focus to cryptocurrency mining in early 2021, revealed last week it had linked a cryptocurrency mining hosting deal with a Russian-based cryptocurrency mining company, BitRiver, via a full entity.

The9 Limited has signed a 2-year agreement with BitRiver below which the Russian-based company would allocate 15 MWs of electricity capacity to The9’s BTC mining unit deployment. BitRiver, based in Moscow, operates data centers using excess hydropower, and the selected site for The9’s BTC mining operations has a starting electric supply volume of 300 Mega Watts.

As per the most recent statistics from the Cambridge Centre for Alternative Finance, Russia is now one of the top 5 nations in terms of BTC hash rate in April, accounting for around 6.8 percent of the worldwide hash rate. China had around 46 percent of the market, whereas the United States had 16.8 percent, rising from 7.2 percent from the previous year.

In the meantime, Kazakhstan’s proportion of hash rate has increased. As per the data, Kazakhstan contributed 8.2 percent of BTC worldwide hash rate in April, rising from 6.2 percent last year.

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