Russia is Promoting Crypto Mining in Siberia: Know Why?
Russia is working towards deploying a $12 million dollar crypto mining farm in Siberia
With this, the government is also incentivizing mining operations with zero land tax and reductions in the income tax rate
Last year when Vladimir Putin said that Russia has a competitive advantage in crypto mining, he indicated the potential that the government is seeing in the technology.
With this, the Russian Federation is supercharged to lend out its cheap electricity and suitably cold environment for more crypto mining projects.
According to the media reports, the Corporation of the Far East of Russia is working towards deploying a $12 million dollar crypto mining farm in Siberia. This farm is likely to have 30,000 mining machines along with 100+ workers to operate the plant.
This mining farm is likely to contribute a sizeable hash rate to the total mining capacity of Russia in the times to come. The total power consumption of the farm is expected to cross 100 Mega-watts and of which a considerable number will come from the Ural Power Grid.
With this, the government is also incentivizing mining operations with zero land tax and reductions in the income tax rate. This support from the government is expected to create a prospering mining ecosystem that is inviting other institutional players to enter the Russian crypto-mining space.
Why Russia is Bullish on Crypto Mining?
According to the latest report, the total power consumption from crypto mining in Russia has crossed the mark of 500 Mega-watts. This could be achieved after a change in perspective and policy of the government post the Ukraine war. Since then the Russian government is willing to open the door for more investments in crypto mining.
Last year, Russian President Vladimir Putin highlighted the competitive advantage that Russia has over other countries when it comes to crypto mining. Cheap electricity along with well-trained crypto mining professionals to cater to the need of hefty mining farms.
Putin clearly outlined that the Central Bank of Russia is not going to hinder the technological progress towards which the country is heading. The support from the state along with other natural advantages makes Russia an important player in the crypto industry and the government is willing to leverage the potential of future tech.
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