Russia has Bitcoin mining farms in remote areas of Siberia whose low temperatures and infrastructure offer great potential. Although Russian economic and political sectors are skeptical about this activity, the state’s nuclear plant opens its doors to cryptocurrencies.
A Russian state-owned nuclear plant will contribute to the operation of Bitcoin mining farms in the Russian Federation. They will offer them their surplus energy, thereby taking a step towards cryptocurrencies.
Seeking to create the necessary conditions for the mining equipment, Rosatom State Atomic Energy Corporation built a special place. To do this, they had to invest about USD 5 million in their facilities in Udomlya, in the province of Tver.
Sergei Nemchenkov, president of Rosenergoatom, a Rosatom subsidiary data center, spoke about that project. The executive said that the mining plant has a power capacity of 30 megawatts.
The Plant Will Not Have Its Own Bitcoin Mining Farms
The board of the nuclear plant assured that they will not have Bitcoin mining farms of their own. In other words, they said they will only offer surplus power to those businesses that need it.
In this sense, they explained that they will contribute to modern digital centers that require large consumption. Among those businesses are data storage companies, as well as those dedicated to mining cryptocurrencies.
Russia is one of the countries with the largest number of active Bitcoin mining farms worldwide. Abandoned facilities in remote areas of Siberia have become the favorite places for this activity. The low temperatures and infrastructures that they have inherited from the Soviet era offer potential that other countries do not have.
First State-Owned Company to Take a Step towards Cryptocurrencies
Powerful economic and political sectors in Russia have expressed great skepticism over Bitcoin mining. However, the aforementioned nuclear plant has become the first state-owned firm to open its doors to cryptocurrencies.
Data centers and places to house mining farms will be in various locations in the Russian Federation. Together, they will provide up to 240 megawatts of surplus energy.
The equivalent price in rubles (RUB) is 5 US cents per kilowatt per hour. It is not one of the best options when it comes to cheap energy. Some provinces in China offer the same measure of energy for 3 US cents.
The Legal Situation of Bitcoin Mining in Russia
The Kremlin has an extremely complex relationship with Bitcoin mining, and many proposals have emerged for its ban. Until now, all attempts have failed, but the activity is still in limbo in that country. The authorities will be in charge of saying the last word sooner or later.
That time has not yet come, but Bitcoin mining farms are still operating normally. However, the authorities of the Russian Federation territory consider other aspects related to cryptocurrencies to be illegal. Among them is the trading of cryptocurrencies, which is strictly prohibited.
Regulators have blocked portals such as Binance and Localbitcoins, among other platforms. Besides, another proposed law contemplates that miners could not receive rewards in cryptocurrencies for their activity. Therefore, the Bitcoin that the blockchain pays to miners will go to the Russian State, which will decide to pay them the equivalent in the local fiat currency.
By Alexander Salazar