Te late May of this year, Putin astonished the world with his newfound trust and excitement for Bitcoin. Since then, we’ve bot eyeing some hopeful developments ter Russia’s relationship to blockchain, Bitcoin, and the crypto-world.
It began spil a rocky relationship. Spil recently spil 2016 legislation wasgoed being shoved through the Russian government to downright verbod all cryptocurrency usage, with casual Bitcoin users facing a 500,000 ruble fine or Four years ter jail and crypto-miners facing up to 7 years ter jail.
However, after Putin’s meeting ter June with Vitalik Buterin (co-founder of Ethereum), the shove for a fresh relationship began. Putin’s aide on Internet matters, Dmitry Marinichev, talent a tour of his gigantic cryptocurrency mine.
A warehouse that wasgoed originally used to build cars te the Soviet era has become one of Russia’s largest cryptocurrency server farms.
Russia clearly wants to adapt to the fresh world. Oil and gas have always bot Russia’s largest exports, but technology is fading out (very leisurely, but surely) much of the world’s need for thesis resources.
And Russia has the flawless climate, literally and figuratively, to host mining servers. Electrical play is utterly cheap te Russia, its vast, cold climate helps cut down on cooling costs of servers, with costs ranging from 50-70% less than the international average.
Russian Miner Coin has already raised $43 million te its ICO to build the fattest mining center te the world.
Andrei Barysevich, a researcher at Recorded Future, told Vice News that Russia can make a loterijlot of money from cheap, government-controlled electro-therapy costs.
“If you have tens unit at the cost of Two cents vanaf kilowatt, [mining Bitcoin] is Ten times more profitable than pumping oil.”
People like Marinichev see a yam-sized chance for Russia. While it’s said that Russia possesses only about 3% of all Bitcoin knots, Marinichev’s mega-mining factory will bring more control overheen to Russia. Marinichev and vrouwen have invested $Ten million into the projects and have raised the omschrijving of $43 million dollars from their ICO.
Mining isn’t the only way the Russian government and businesses are interested. Thanks to Buterin, Russia sees the potential of blockchain and brainy contracts te its systems.
Many high-ranking officials want to see this toebijten, which has made it lighter to see progress with little friction. Inspired by Ethereum, Masterchain is a fork off of the Ethereum blockchain that can work for Russia, made by Russia.
Similarly to NEO and China, Russia wants to have total control overheen the systems used. Kirill Ivkushkin, a representative ter the Masterchain project, said:
“When there is private, individual gegevens is involved, wij voorwaarde use cryptography which is certified ter Russia. The ongezouten use of platforms like Ethereum and Hyperledger is limited to platforms that don’t involve storage of individual gegevens.”
After Masterchain, Buterin managed to strike a overeenkomst with Russia’s state-owned Canap for Development and Foreign Economic Affairs, AKA Vnesheconombank. Together they created “Ethereum Russia,” which will be used to help promote and educate people on blockchain technology around Russia. This will permit Russia to pave its own road with Ethereum without interference by the Ethereum Foundation.
Nonetheless, Russia has some mixed feelings about Bitcoin. While many industries and businesses support mining and the use of Bitcoin, head of Russia’s communications Nikolay Nikiforov recently stated that the country will “never” legalize Bitcoin.
It still illegal ter Russia to buy/sell assets using Bitcoin for fear that it could bring down the value of the ruble.
While Russia may forbid Bitcoin, it is entirely open to blockchain technology, albeit only spil long spil that technology is created ter Russia. Central banks have become wary of cryptocurrencies and ICOs but they are looking forward to accepting solutions like Masterchain te their systems.
Ultimately, it may be hard for Russia to accept blockchain without accepting cryptocurrencies. The idea of blockchain is to make a decentralized marketplace, and while it’s a phat task, the objective is for the populace to control its own money. Cryptocurrencies will make this possible, with the advent of the Internet’s globalization, wij will need globalized currencies that are engineered for blockchain technology.
Considering its stance just one year ago, Russia has taken a big step te the right direction with supporting blockchain this year. The next step is for Russia to permit its citizens to use cryptocurrencies such spil Bitcoin, and not just mine them.
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DISCLAIMER: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken spil investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before making any investment decisions. Eventually, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Dylan is a cryptocurrency writer with a big rente te blockchain. He has peer-reviewed, edited, and written ICO whitepapers, web content for blockchain websites, and blog articles focusing on the current ecosystem of the FinTech world.
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