• The project aims at accumulating the global computing resources for crypto mining for the Russian Federation.
• RACIB’s initiative will prevent concentration of miners in North America and thus stabilize the global digital economy.
• Russia is the fourth largest energy producer followed by China, the United States, and India.
Russian association decides to include China’s largest crypto mining firms in its most recent project as more and more Chinese miners are going offline amidst the nation’s mining ban. China contributes two-third of the total mining activities across the world. During May, the Chinese regulators had mandated the miners in the Sichuan and other mining hubs to shutdown their operations. Consequently, miners have been shifting to the west. The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain, or RACIB disclosed a project which aims at accumulating the global computing resources for crypto mining for the Russian Federation.
RACIB’s Working Group may be Developing Eco-friendly Mining Farms
RACIB is the sole public organization in the Russian Federation that looks after the interests of representatives of the cryptocurrency and blockchain industry. Russian is among the top five countries in terms of electricity production. Several working groups have been deployed in cooperation with the executive authorities of the Russian Federation, regions, as well as with state corporations. One of these many working groups is working on an eco-mining project which aims at construction of mining farms propelled by only renewable sources of energy. Nuclear and hydro energy constitute 40% of the total energy production. However, new sources of energy such as wind are also being taken into consideration.
How RACIB’s Initiative Will Help the Chinese Miners?
Russia is the fourth largest energy producer followed by China, the United States, and India and generates 1,100 terawatt-hours of energy per year. The crypto and blockchain association also announces that the largest foreign collaborator in the project is a Consortium of the largest mining companies in China. Apparently, the consortium constitutes 25% of the total hashrate in the world. This will enhance Russia’s presence in the global market of Digital economy infrastructure.
Moreover, the prevailing socio-economic conditions in East Asia due to non-availability of energy resources as well as unfriendly cryptocurrency policies have forced the Chinese miners to migrate to crypto-friendly nations like the United States and Canada. China’s Bitcoin hashrate has already fallen below 46% from 75.5% in September 2019 following China’s mining crackdown. On the other hand, the US and Russia’s hashrate has surged to 17% and 8% respectively. RACIB’s most recent initiative will prevent concentration of miners in North America and thus stabilize the global digital economy.