A Russian association has announced a new project to attract bitcoin mining companies as miners face hardships in China.
A public association in Russia focused on representing the interests of the cryptocurrency industry in the country has announced a new project for attracting Bitcoin miners onto Russian soil.
According to the project, headed by the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (RACIB), the characteristics of the Russian Federation’s energy production can be attractive for bitcoin mining operations.
It claimed that excess electricity might amount to over 50% of power plants’ capacity, depending on the region. And besides plugging into otherwise wasted power, Bitcoin miners could also enjoy free cooling from the country’s cold climate, accessing higher energy efficiency.
Russia’s large territory also makes it possible for extensive mining operations to be deployed, the statement said. Additionally, RACIB shared in the announcement that the group closely cooperates with executive authorities of the country as well as regional and state corporations.
Ever since Chinese authorities started declaring a broader Bitcoin crackdown this year, miners have started fleeing the country. Some operations have flocked to Kazakhstan, and that country might soon become a hotbed for bitcoin mining. For instance, leading bitcoin mining rig manufacturer Canaan announced last month that it would start mining BTC itself and set up new operations in Kazakhstan.
But RACIB apparently wants a share of the pie, and it is targeting those bitcoin miners leaving China to find a new home in Russia, instead of its neighboring country of Kazakhstan.
“Currently, the largest foreign partner of RAСIB in this project is a Consortium of the largest mining companies in China,” the announcement read, “which together control more than 25% of the global hashrate of the main cryptocurrencies and, first of all, Bitcoin.”
By transferring part of those computing capacities to Russian territory, the project claimed it seeks to increase the country’s share in the “global market of digital economy infrastructure.” The main goal, it said, is to decentralize the bitcoin mining industry further.
Although there is truth in tackling single points of failure, Russia’s political structure might undermine the project’s aim. A referendum approved in July 2020 further extended President Vladimir Putin’s eligibility to remain in office and retain his grip on power.
But besides the country’s totalitarian demonstrations, Russia might be getting ready for a post-Putin era of “adaptive authoritarianism.” However, it is still unclear what bitcoin miners could expect regarding operational stability and political assurances in Russia.