Crypto Mining Can Bring in Billions in Taxes For Russia

Russia is known for its surplus electricity production, which already reached 20 GW last year. Now according to a report, the country can make use of this surplus supply in cryptocurrency mining, and rake in almost $1 Billion only in tax revenues.

An industrial mining solution provider which goes by the name Bitcluster has carried out a study which shows that the surplus energy production in Russia could be used to power 14.8 Million Antminer S9i ASIC mining rigs. If the government decides to invest the surplus electricity production into the cryptocurrency mining, it could easily collect 70 Billion rubles (more than a billion dollar) in taxes.

Bit Cluster Believes Russia Could Become The Mining Capital Of The World

The report further claims that Russia could invest in building a crypto valley as there are plenty of companies and investors willing to put in their money for a crypto project. The report believes that the country won’t need more than a billion ruble worth of investment.

The report suggests that the proposed Blockchain valley could be situated around the hydroelectric power plants as the energy required is available in plenty at very cheap rates.

However, this was not the first time when a crypto-centered valley has been proposed, even earlier, the government was drafting plans to locate certain areas in the country which could be used especially for the crypto related businesses.

The government was also planning to legalize crypto mining businesses in the country as it sees the potentials of a cashless digital economy. Russia’s geographical location plays a very important role in making it a heaven for mining farms and crypto related businesses.

Final Thoughts

Apart from the recent report for creating a crypto valley and legalizing crypto mining, the state is also planning to launch its own state-backed cryptocurrency. The project is currently in the pipeline and would take around a couple of years before we can get a glimpse or hear about its progress.

The country’s move towards becoming a crypto centric state could help it elevate its economy even further. The other aspect apart from cheap energy availability is its cold climate, vast areas which are currently of no use could be used to set up data centers. Data centers need to be located at isolated safe places where they cannot be accessed by anyone apart from the authorities in control.