New project aims to bring global crypto miners to Russia

A major cryptocurrency and blockchain association in Russia is launching a project to introduce global cryptocurrency mining business into the country in the context of China’s crackdown on cryptocurrency mining.

Russian Association for Cryptoeconomics, Artificial Intelligence and Blockchain, or RACIB, Announce A plan to transfer global computing resources for crypto mining to the Russian Federation. A RACIB spokesperson told Cointelegraph that more information about the project is expected to be released later.

The announcement pointed out that in order to promote and implement the project, RACIB is working closely with Russian government authorities and state-owned enterprises to form a series of joint working groups with local state agencies.

One of the teams focuses on “eco-mining” projects, which are used to build mines and data centers powered by renewable energy. In addition to Russia’s abundant hydropower and nuclear energy, the group also seeks to establish an encrypted mining business based on green energy such as wind power plants.

As part of this project, RACIB has already cooperated with a number of foreign partners, including consortia of some of the largest crypto mining-related companies in China. The announcement stated that the companies in the alliance control “more than 25% of the global hash rate of major cryptocurrencies.”

According to the energy-focused publication NS Energy, Russia is Fourth largest It ranks first in power generation, with an annual power generation output of more than 1,100 TWh, second only to China, the United States and India. According to the announcement, during 2021, Russia has established more than 1,100 megawatts of wind power plants in the Rostov Region, the Republic of Kalmykia, Adygea, and Stavropol Krai.

related: The9 signs green Bitcoin mining agreement with Russian company BitRiver

New initiatives bring another strategic opportunity for global crypto miners Chinese mining companies fleeing the country Because local authorities have been cracking down on cryptocurrency mining activities and stopping key mining farms. According to data from the Cambridge Alternative Finance Center, China’s Bitcoin hash rate has plummeted before it was suppressed. Fall to 46% in April 2021 From 75.5% in September 2019. During the same period, the share of computing power in the United States soared from 4% to nearly 17%, while the computing power of Russia and Kazakhstan rose to around 8%.

Russia is not the only country that provides energy to Chinese miners to make them a major player in the industry.Mayor of Miami Francis Suarez’s public invitation in June As Chinese miners surrender, Chinese crypto mining companies are considering building a data center in the city.