Sunday, January 29, 2023

Russia Picks Prime Bitcoin Mining Territory as CryptoRuble Launch Nears

Russia Picks Prime Bitcoin Mining Territory as CryptoRuble Launch Nears

Throughout 2016 and 2017, the Russian government seemed to contradict itself when it came to its cryptocurrency policies. However, Russia has finally formed an distinct approach to cryptocurrency with its upcoming CryptoRuble. Cryptocurrency now has a future in Russia.

Also read: Sorry, No New Coins — SegWit2X Dead Despite Late Revival Effort

“The countries that are at the forefront of this technology will be the ones developing the new technology and occupying the coveted new leadership roles in the new economy as it emerges.” — Emin Gün Sirer, (Cryptographer at Cornell University)

Over time, Russia’s stance on cryptocurrency has become clear. The Russian government aims to control the average citizen’s use of cryptocurrency. However, Russia views cryptocurrency as a means to strengthen its nation and its position in the world.

Russia Is Looking at Prime Bitcoin Mining Space as CryptoRuble Approaches

The Russian Association of Blockchain and Cryptocurrency, (RACIB), discovered that the Krasnoyarsk Territory was ideal for mining Bitcoin and other cryptocurrencies. The RACIB was formed in August 2017 to further the interests of Russia’s ICO investors, currency investors, blockchain participants and miners. The Krasnoyarsk region is a hub for trade, transportation and communication. Electrical costs in the region are low and the Yenesei River runs nearby. Farmers can use its water to cool their rigs.

Companies from all over the world have also turned to Russia to host their mining operations. 40 companies have submitted applications already. Russia offers both cheap electricity and a cold climate that are great for mining. Experts believe that the average mining container in Russia could yield up to .5 BTC/day.

Neither Hot Nor Cold

Historically, Russia has demonstrated resistance to the free exchange of cryptocurrency. Though Vladimir Putin ordered the creation of the digital Ruble, this came with legal regulations, tax regulations and blockchain restrictions. Independent miners can’t mine the CryptoRuble. It can only be issued by the Russian government, which will also control and maintain it. Any untraceable CryptoRubles can only be cashed out to fiat Rubles after a 13 percent fee is assessed.

Giving the go-ahead for the CryptoRuble also didn’t mean that Bitcoin, (or any other cryptocurrency), was considered legal in Russia. In fact, the Russian government stated that — once the CryptoRuble goes live — it will issue an official mining ban for all other cryptocurrencies.

bitcoin mining

Meanwhile, Russian banks are developing their own master chain that’s similar to Ethereum, which will possibly be the blockchain used by the CryptoRuble.

Cafés and restaurants throughout Russia have started accepting Bitcoin — Burger King even has its own WhopperCoin.

Future Plans

Overall, officials throughout the Russian government seem to see the “big picture” when it comes to cryptocurrency’s role in the future. RACIB President Yuri Pripachkin was quoted as saying, “Russia has every chance of becoming the world capital of mining.”

Furthermore, Putin’s administration seems to be personally involved with cryptocurrency. Advisor on Internet Issues, Herman Klimenko owns his own mining farm, called Russian Miner Coin; while the Internet Ombudsman and head of RadiusGroup IT Solutions, Dmitry Marinchev, is building the Russian Mining Center.

While many throughout the world still mistakenly think that cryptocurrency is only for geeks, gamers and criminals, Russia is taking cautious and studied steps every day to integrate cryptocurrency into its national infrastructure.

How do you feel about the Russian Government’s approach to cryptocurrency legislation and policy? Share your comments below!

Images via Flickr, Pixabay

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