A BitRiver executive has claimed that the fast-growing Russian crypto mining sector could help turn the nation into a major force in the world of AI.
Per the state-run news agency TASS, the comments came from Oleg Ogienko, the deputy director-general of communications at BitRiver, Russia’s biggest industrial miner.
“Boosting transparency in the crypto mining sector and an influx of investments into the industry are a serious step towards Russian global leadership in the field of AI and digital technology.”
BitRiver Executive Oleg Ogienko
Russian Crypto Mining Sector: An AI Boost?
Russian industrial crypto miners have launched a (mostly successful) charm offensive this year.
This has resulted in the passing of two crypto mining-related mining laws. These give Moscow the power to cut off electricity supply to miners in selected regions. But they have also legalized industrial mining.
Miners now have to submit data on their operations to the nation’s tax body and anti-money laundering agency.
However, Ogienko and others have claimed that legitimizing mining as an official “form of entrepreneurship” has paved the way for serious investment.
Several major players – including BitRiver – have announced plans to build data centers in Russia in the wake of Moscow’s move.
And many think miners sweetened the deal by offering Moscow access to these new, state-of-the-art centers.
Experts think the government wants to use these centers to power nationwide, state-run AI projects.
“Industrial mining has created a serious foundation for the launch of projects in the field of artificial intelligence. This has significantly increased the potential of Russian computing power.”
Ogienko
The biggest slump since July in Russia's weekly crude shipments dragged down the four-week average in the period to Nov. 3, writes @JLeeEnergy https://t.co/ab7tT6zbEO
— Bloomberg (@business) November 5, 2024
‘Strategic Importance’ of Crypto
Ogienko also told the news agency that the crypto “mined in Russia is strategically important.”
He added that “among other things” crypto would help Russia withstand “geoeconomic pressure.”
The BitRiver exec said that crypto mining and building crypto reserves would help “manage, maintain, and increase” the volume of Russia’s “foreign economic activity.”
Russia launched a Soyuz rocket carrying two satellites designed to monitor the space weather around Earth and 53 small satellites, including two Iranian ones, Russia's Roscosmos space agency said https://t.co/6wP9JOHiEG
— Reuters (@Reuters) November 5, 2024
Ogienko concluded that Russia was now “moving toward” creating “all the necessary infrastructure” needed to “allow the use of the cryptocurrency mined on the territory of the country in the interests of the state and domestic market players.”
Earlier this week, Moscow announced a monthly 6,000kWh electricity cap for private crypto miners.
Those who wish to consume more than this will need to obtain a license from the tax agency and submit crypto wallet details.
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