Companies from China and the European Union have reportedly applied to start mining Bitcoin in Russia.
It has been reported that the Russian Association of Blockchain and Cryptocurrency (RACIB) has received 40 applications from companies and individuals to mine Bitcoin in Russia. The countries range from European Union countries to China who has offered to place mining equipment in Russia.
The reports were allegedly sent to a local publication last week by the RACIB president, Yuri Pripachkin. The local publication quoted the association’s president as saying that Russia already had hundreds of such factories, mining Bitcoin daily.
He also said that the country has ample energy resources which can be sold to potential miners effectively while still turning a profit for the government. The RACIB was formed in August with the aim of uniting blockchain participants and owners.
The association is also aimed at bringing together investors of cryptocurrencies and initial coin offerings (ICOs). The formation of the association was announced by Herman Klimenko the internet issues advisor for President Vladimir Putin.
Pripachkin has also provided his commentary on cryptocurrency mining in Russia stating that it was a new market for energy companies in Russia. He also said that it was important for the country to prepare relevant legal legislation and preferential taxation for foreign investors of cryptocurrencies.
Arseniy Shcheltsin the director for the association, has said that a committee of participants in the mining market was formed by the organization recently. This was done with the participation of representatives from both China and Slovakia. The two countries have stated that they are preparing proposals to increase the investment attractiveness for cryptocurrency mining in Russia.
He also said that all recommendations will be forwarded to the Ministry of Economic Development as well as the Ministry of Energy for the Russian Federation. According to Pripachkin, Russia has a very good chance of becoming the capital of mining in the world. In a report, the Ministry of Energy has stated that the installed capacity of power plants in Russia totaled 244.1 GW. This was as of December 31, last year.
It also stated that the maximum usage load during that time was only 154.3 GW. This indicated plentiful free capacity which is likely to attract investments into the economy. The investment is estimated to bring in about 1.7 trillion rubles a year.
Experts have said that the favorable prices for electricity in Russia is responsible for the high-interest mining.
Overall, the investment will see several hundred containers being placed in the country with a capacity of 3 MW each. This will give a daily yield of approximately 0.5 BTC equivalent to around 200,000 rubles.