28 July 2021
Amid the recent crypto mining crackdown in China, the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (RACIB) announced the launch of a project to bring global crypto mining operations to the country.
This initiative aims at transferring global computing resources for crypto mining to the Russian Federation. RACIB is closely working with Russian government authorities and state corporations, forming a range of joint working groups with local state structures to promote and implement the project
One such group is mainly focused on an "eco-mining" project for building mining farms and data centres powered by renewable electricity sources. Additionally, the group seeks to establish crypto mining operations based on green energy sources like wind-based power plants.
As part of the project, RACIB has already collaborated with some foreign partners, including a consortium of some of China's largest crypto mining-related companies. The announcement reveals that companies in the consortium control "more than 25% of the global hashrate of the main cryptocurrencies."
According to energy-focused publication NS Energy, Russia is the fourth-largest country in terms of electricity production, generating over 1,100 terawatt-hours of energy per year, following China, the United States, and India. Throughout 2021, Russia has set up over 1,100 megawatts of new power plants using wind farms in areas like the Rostov region, the Republic of Kalmykia, Adygea, and Stavropol Krai.
The new project offers a strategic opportunity for global crypto miners amid Chinese mining firms fleeing the country as local authorities have been continuously cracking down on crypto mining activity. Russia is not the only country offering Chinese miners its energy capacity to emerge as a major player in the industry. Miami mayor Francis Suarez in June also publicly invited Chinese crypto mining companies to consider establishing data centres in the city.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.