New Project Aiming Towards Bringing Global Crypto Miners To Russia

The Chinese crypto mining crackdown hasn’t stopped yet. In the middle of this situation, a prime cryptocurrency and blockchain association in Russia is planning to launch a project. Their aim is to bring global crypto mining operations to the country. The RAICB or the Russian Association of Cryptoeconomics, Artificial Intelligence, and Blockchain has recently announced that they have taken this initiative to transfer all the global computing resources for crypto mining to the Russian Federation. According to a spokesperson for RACIB, they will reveal the descriptive information on this project later. RACIB wants to successfully promote and implement this project. This is why it is closely cooperating with all the Russian government authorities and state corporations. The purpose behind this is to form a joint working group with the state structures.

There exists one such group whose major focus is on the “eco-mining” project. It builds mining farms and data centers. They are powered by renewable electricity sources. Along with Russia’s rich hydro and nuclear-based energy, this group is also thinking about establishing crypto mining operations that are solely based on green energy sources such as wind-based power plants.

What’s More?

RACIB has already partnered with some foreign companies as a part of this project. This includes an association of a few largest crypto mining-related companies in China. It has been found out that companies in the consortium are controlling “more than 25% of the global hashrate of the main cryptocurrencies.” NS energy, the energy-focused publication, says that Russia stands at fourth place in terms of electricity production and it generates over 1,100 terawatt-hours of energy per year after the countries China, the USA, and then India. In the duration of these 6 months of 2021, Russia has now set up over 1,100 megawatts of new power plants with the help of wind farms in several areas. The areas include the Rostov region, the Republic of Kalmykia, Adygea, and Stavropol Krai.

In the middle of such a delicate situation where Chinese mining firms are running away from the country, this new initiative has surely brought yet another strategic opportunity for global crypto miners. Local authorities are not stopping to crack down on crypto mining activity and shutting major mining firms in China.  The Cambridge Centre for Alternative Finance’s data claims that the Bitcoin hash rate in China had already started to crash long before the crackdown started.

It dropped to 46% in April 2021 and about 75.5% in September 2019. At the same time, the hash rate in the U.S. flowed from 17% to 4%. Meanwhile, in Russia and Kazakhstan, it rose to about 8%. However, amongst such chaos, Russia is not the only country to offer Chinese miners its energy capacity. The country has done so that it can emerge as the main player in the mining industry. Miami mayor, Francis Suarez also publicly invited Chinese crypto mining companies in June to establish data centers in the city.