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Can Russia provide a safe haven for Bitcoin Miners?

Jan 21, 2018 Posted /  2667 Views

Can Russia provide a safe haven for Bitcoin Miners?

As China banned crypto mining and other Asian countries also possessing a strict stance on it, there had been a quite a dilemma on the use of cryptocurrencies. Russia however, has been quietly preparing for a wave of crypto-mining migrants from the nations around the globe. A third of the Soviet era power-producing capacity is inactive after energy-hungry industries were closed and morsel in the 90’s. Experts, around the globe, agree that Russia is one country which might accommodate bitcoin miners from China and Europe.

Russia can offer opportunities

You might find ads like “Hello, Invite Chinese miners to Russia!! Excess electricity capacity – 20 MW… 3 rubles/kWh (0.05USD; 0.32RMB)” in bitcoin forum these days. The country is even arrogant about its offers to the miners. The country has even received over Dozens of applications to mine bitcoin from companies and individuals from China and the EU. The Russian Cryptocurrency and Blockchain Association have invited colleagues from China and Slovakia to assist in framing Russia as a popular attraction for bitcoin miners. The country has 11 time zones, filthy rich with natural resources and cheap energy, and it has been estimated that the mining industry can pour trillions of rubles into federal and regional budgets. The domestic experts are now putting forth that the country should present favourable atmosphere for the miners as much as possible.

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In a recent trajectory of events by key players in the “multipolar” world- as Russia assumes have made it apparent that the stage is set for some bullish play by the Bear waking up after winter hibernation. The country is at present preparing for the G20 summit in March, as Franco-German proposals have been circulating in the market to regulate cryptocurrencies. In the light of these premeditated regulations the US Treasury Secretary seeks assistance from the Group of 20 to prevent “digital anonymous Swiss bank accounts”; Headed by the People’s Bank of China, a working group has prearranged measures to constrain mining operations in those Chinese regions that offer the best conditions- cheap electricity and cool climate. However, everyone in the world knows that Russia has both the climate and the power- electrical and political and might soon invite barred crypto businesses and miners.

Russian authorities as reported by media says that has been organizing and preparing for a regulatory framework and in lieu sought advice from the experts abroad. The country has invited miners from 15 countries and asked for their help to explain how Russian legislators can incorporate laws that cryptocurrencies are mined and regulated in the country. It has been speculated that experts from China and Slovakia have come forth with their proposals to develop Russia as a mining friendly nation and widen its appeal to mining investors. These experts have been asked to join a special committee representing the sector, RCBA’s president Yuriy Pripachkin told RIA Novosti. The media had earlier too revealed that the government’s intentions to attract miners from Europe. Sergei Repetyuk, Economics Director at the Institute of Economics and Natural Monopolies, said-

“I don’t see any problem if the Chinese start relocating their mining farms to Russia.”  

He further pointed out:

“Even in peak times, up to 40% of Russia’s power generating capacity remains unutilized.”

Evgeniy Itsakov, the associate professor at the Faculty of Economic and Social sciences, also supported Repetyuk’s assertion by saying-

“There is a surplus of cheap electric energy in Russia, as the generating capacity has been designed to match the needs of the heavy Soviet industry.”

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Tags: russia Bitcoin Miners Europe China

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