Russian Government Plans to Subsidize Bitcoin Mining Electrical Cost

Russian newspaper Izvestiya has reported that the Russian government intends to subsidize the cost of electricity for cryptocurrency miners.

The report indicates that the Russian government, through the Institute for Internet Development (IRI) and the Russian Association of Blockchain and Cryptocurrency (RABIK), have laid out plans to make electricity costs lower for Russian Bitcoin miners.

While the report does not give location specifics, it does explain that the cost of mining in Russia is high even though Russia has a substantial electricity oversupply. The report states:

“The largest cryptocurrency farm in Russia consumes in aggregate 4.5 mWh, or 3240 mW per month. The cost of 1 kWh depending on the region is from 2 rubles to 5.3 rubles. In addition to the legalization of cryptocurrency in Russia, it is necessary to create the most favorable conditions for the work of miners.”

The report shows Russia’s continued dedication to cryptocurrencies and Blockchain technology, in spite of recent statements that cryptocurrencies are not for ordinary people.