Russia chooses prime Bitcoin mining territory as CryptoRuble launch approaches
18th November 2017 by Megan Taylor
In 2016 and 2017, the Russian government appeared to be at odds over its cryptocurrency policy. However, Russia has finally developed its own approach to cryptocurrency with its upcoming CryptoRuble. Cryptocurrency now has a future in Russia.
Also read: Sorry, no new coins – SegWit2X dead despite later resuscitation
“The countries at the forefront of this technology will be those who develop the new technology and take the coveted new leadership roles in the emerging new economy.” – Emin Gün Sirer, (Cryptographer at Cornell University)
Over time, Russia’s stance on cryptocurrency has become clear. The Russian government aims to control the use of cryptocurrencies by the average citizen. However, Russia views cryptocurrency as a means to strengthen its nation and its position in the world.
Russia views Prime Bitcoin Mining Space as CryptoRuble approaches
The Russian Blockchain and Cryptocurrency Association (RACIB) discovered that the Krasnoyarsk Territory is ideal for mining Bitcoin and other cryptocurrencies. The RACIB was founded in August 2017 to promote the interests of Russian ICO investors, currency investors, blockchain participants and miners. The Krasnoyarsk Territory is a center of trade, transportation and communication. Electricity costs are low in the area and the Yenesei River is nearby. Farmers can use its water to cool their oil rigs.
Companies from around the world have also turned to Russia to host their mining operations. 40 companies have already submitted applications. Russia offers both cheap electricity and a cold climate that is great for mining. Experts believe that the average mining container in Russia could deliver up to 0.5 BTC / day.
Neither hot nor cold
In the past, Russia has shown resistance to the free exchange of cryptocurrencies. Vladimir Putin ordered the creation of the digital ruble, but with legal regulations, tax regulations and blockchain restrictions. Independent miners cannot mine the CryptoRuble. It can only be issued by the Russian government, which also controls and manages it. All CryptoRubles that cannot be found can only be paid out in fiat rubles after a fee of 13 percent has been charged.
The release of the CryptoRuble also didn’t mean Bitcoin (or any other cryptocurrency) was considered legal in Russia. In fact, the Russian government announced that as soon as the CryptoRuble goes live, it will issue an official mining ban on all other cryptocurrencies.
Meanwhile, Russian banks are developing their own master chain similar to Ethereum, which may be the blockchain used by CryptoRuble.
Cafes and restaurants all over Russia accept Bitcoin – Burger King even has its own WhopperCoin.
Overall, officials across the Russian government seem to see the “big picture” when it comes to the role of cryptocurrency in the future. RACIB President Yuri Pripachkin was quoted as saying: “Russia has every chance of becoming the world capital of mining.”
In addition, Putin’s government appears to be personally involved in cryptocurrency. As an internet advisor, Herman Klimenko owns his own mining farm called Russian Miner Coin; while the Internet ombudsman and head of RadiusGroup IT Solutions, Dmitry Marinchev, is building the Russian mining center.
While many around the world still mistakenly believe that cryptocurrency is only for geeks, gamers and criminals, Russia is taking cautious and scrutinized steps every day to integrate cryptocurrency into its national infrastructure.
What do you think of the Russian government’s approach to cryptocurrency legislation and policy? Share your comments below!
Images via Flickr, Pixabay
“Sorry, No New Coins – SegWit2x Dead Despite Late Revival MeasuresJapan ICO Sales Not Free For All, Blockchain Industry Warns”