Russia Ready for Migrant Bitcoin Miners Influx
Despite some indecisiveness about cryptocurrencies on the part of centralized power, Russia has been quietly preparing for a wave of migrant crypto miners from East and West. It’s been said that the country has got what it takes to invite them. A third of the Soviet era power producing capacity is idling, after energy hungry industries were closed and scrapped in the 90’s. Experts, home and abroad, members of the local crypto community, all agree – Russia is ready to welcome bitcoin miners from China and Europe. That’s if Moscow says “yes”… or at least doesn’t say “no”.
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Russians Mean Business
“Hello, Invite Chinese miners to Russia!! Excess electricity capacity – 20 MW… 3 rubles/kWh (0.05USD; 0.32RMB)”. This is just one of many ads you can find in bitcoin forums these days. With electric installation to plug in the rigs – ready, internet cables stretched in a 5,000 m2 air-cooled building – check, fire alarm and CCTV cameras – installed, and 24/7 tech support – available, Russians mean business. The country is ready and even bragging about what it can offer to miners chased beyond the Great Wall, but not only, “Do you cooperate with European colleagues?” a question reads when you scroll down. “I’ll send the contract…”, the answer follows shortly after.
Dozens of applications to mine bitcoin in Russia have been received already from companies and individuals from China and the EU.
The Russian Cryptocurrency and Blockchain Association has invited colleagues from China and Slovakia to help increase Russia’s appeal to relocating miners. Spanning 11 time zones, filthy rich with natural resources and cheap energy, the largest country has a lot to offer. It has been estimated that the mining industry can pour trillions of rubles into federal and regional budgets. And Russian experts say authorities must think about creating the right conditions to accommodate the market.
Government, business and crypto community have long recognized certain developments to the East and West of Russia. Signals from Beijing, Brussels, and Washington have been heard and are certainly being analyzed and interpreted. Not willing to sacrifice an inch of its “Sovereign Democracy” territory, Moscow, when it comes to cryptocurrencies, has been tempted to gain some ground, vacated by rivals and competitors.
Recent moves by major players in the “multipolar” world, as Russia likes to view it, have cleared the arena for some bullish play by the Bear waking up after winter hibernation. In preparation for the G20 summit in March, Paris and Berlin are working on joint Franco-German proposals to regulate cryptocurrencies; The US Treasury Secretary seeks help from the Group of 20 to prevent “digital anonymous Swiss bank accounts”; Headed by the People’s bank of China, a working group has prescribed measures to restrict mining operations in those Chinese regions that offer the best conditions – cheap electricity and cool climate. Well, Russia has both the climate and the power, electrical and political, to invite expelled crypto businesses and miners.
Preparing its regulatory framework, expected by the summer, Russian authorities have sought advice from abroad. Miners from 15 countries have been asked to explain to Russian legislators how cryptocurrencies are mined and share knowledge about different approaches to regulation. The Russian Cryptocurrency and Blockchain Association has invited experts from China and Slovakia to help with proposals to increase Russia’s appeal to mining investors. They have joined a special committee representing the sector, RCBA’s president Yuriy Pripachkin told RIA Novosti. Intentions to attract miners from Europe, have been discussed in the past.
“I don’t see any problem if the Chinese start relocating their mining farms to Russia”, Sergei Repetyuk, Economics Director at the Institute of Economics and Natural Monopolies, said, quoted by the agency.