Russian crypto enthusiasts have already formed a coalition with some of China’s major cryptocurrency mining companies.
In response to China’s crypto mining crackdown, a major cryptocurrency and blockchain organisation in Russia is launching an initiative to bring worldwide crypto mining companies to the nation.
The Russian Association of Cryptoeconomics, Artificial Intelligence, and Blockchain, or RACIB, has revealed a plan to move worldwide computing resources for crypto mining to the Russian Federation. Additional details about the initiative are scheduled to be disclosed at a later date, a RACIB spokeswoman told Cointelegraph.
RACIB is collaborating closely with Russian government agencies and state enterprises to promote and implement the initiative, developing a variety of collaborative working groups with local state entities, the release states.
One such group is working on an “eco-mining” initiative that will involve the construction of mining farms and data centres powered entirely by renewable energy sources.
Along with Russia’s abundant hydro- and nuclear-energy resources, the business is looking to create crypto mining operations powered by green energy sources such as wind farms.
RACIB is already collaborating on the project with a number of overseas partners, including a consortium of some of China’s major crypto mining companies. According to the statement, the consortium’s members control “more than 25% of the global hashrate of the major cryptocurrencies.”
Russia is the fourth-largest electricity producer in the world, producing about 1,100 terawatt-hours of energy per year, after China, the United States, and India, according to energy-focused newspaper NS Energy. According to the announcement, Russia will instal over 1,100 megawatts of new wind energy capacity by 2021 in places such as the Rostov region, the Republic of Kalmykia, Adygea, and Stavropol Krai.
The new endeavour provides another strategic opportunity for global crypto miners, as Chinese mining firms continue to exit the country as local authorities tighten down on crypto mining activities and shut down important mining farms.
China’s Bitcoin hash rate has already decreased significantly prior to the crackdown, falling to 46 percent in April 2021 from 75.5 percent in September 2019. During the same period, the United States’ hash rate share increased to about 17% from 4%, while Russia and Kazakhstan’s hash rate increased to around 8%.
Russia is not the only country granting Chinese miners access to its energy resources in order to become a big participant in the business.
Mayor Francis Suarez of Miami officially asked Chinese cryptocurrency mining businesses to explore installing data centres in the area in June, following China’s miner capitulation.