New project aims to bring global crypto miners to Russia

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A major cryptocurrency and blockchain association in Russia is launching a project to bring global crypto mining operations to the country amid a Chinese crackdown on crypto mining.

The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain, or RACIB, has announced an initiative to transfer global computing resources for crypto mining to the Russian Federation. More information on the project is expected to be released at a later date, a RACIB spokesperson told Cointelegraph.

In order to promote and implement the project, RACIB is cooperating closely with Russian government authorities and state-owned companies, forming a series of joint working groups with local state structures, the announcement notes.

One of these groups is focusing on an eco-mining project for the construction of mining farms and data centers powered by renewable sources of electricity. In addition to Russia’s rich hydro and nuclear power, the group is looking to establish cryptocurrency mining operations based on green energy sources like wind power plants.

As part of the project, RACIB is already working with some foreign partners, including a consortium of some of the largest companies related to crypto mining in China. The announcement notes that the companies in the consortium control more than 25% of the global hashrate of major cryptocurrencies.

According to the energy-focused publication NS Energy, Russia is the fourth country in terms of electricity production, generating more than 1,100 terawatt-hours of energy per year, after China, the United States and India. According to the announcement, during the year 2021, Russia has installed more than 1,100 megawatts of new power plants using wind farms in regions such as the Rostov region, the Republic of Kalmykia, Adygea and Stavropol Krai .

Related: The9 Signs Green Bitcoin Mining Deal With Russian Company BitRiver

The new initiative provides another strategic opportunity for the world’s crypto miners among Chinese mining companies fleeing the country as local authorities have continuously cracked down on crypto mining activity and shut down key mining farms. According to data from the Cambridge Center for Alternative Finance, China’s Bitcoin hash rate had already fallen before the crackdown, falling to 46% in April 2021 from 75.5% in September 2019. During the same period, the share America’s hash rate jumped to almost 17% from 4%, while Russia and Kazakhstan’s hash rate jumped to around 8%.

Russia is not the only country to offer Chinese miners its energy capacity to become a major player in the industry. Miami Mayor Francis Suarez publicly called on Chinese crypto-mining companies in June to consider establishing data centers in the city amid the miners’ surrender in China.

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