Russia is considering a proposal to allow gas stations to mine Bitcoin as a means of generating revenue. The move would be an unprecedented step in the Russian cryptocurrency space, and could lead to increased adoption of cryptocurrencies within the country.
The russian bitcoin mining farm is a proposal that has been put forward by Russian officials. This proposal would allow the government to mine Bitcoin with associated gas.
A new proposal to mine Bitcoin (BTC) using related petroleum gas is being considered by the Russian government.
Vasiliy Shpak, Russia’s deputy minister of industry and trade, is said to have submitted a proposal to the Russian central bank and the Ministry of Digital Development to mine cryptocurrencies using the country’s oil field equipment.
According to Kommersant, the petition was submitted on Sept. 7, requesting input from the government on an idea that originated with local oil and gas firms.
The companies suggested using related gas to power neighboring Bitcoin mining computer facilities. This kind of natural gas, known as related gas, is a byproduct of oil drilling, but it is often squandered via flaring, in which the surplus gas is simply burnt off, owing to the prohibitive expense of adequate gas infrastructure.
The Russian government has tried to minimize gas flaring in order to reduce emissions, but has been unable to achieve goals owing to a lack of infrastructure.
Through “hybrid modules of digital currency extraction,” Shpak allegedly stated in the letter that using the gas for Bitcoin mining may possibly enhance the efficiency of natural gas use in thermal production.
The initiative includes “one of Russia’s biggest oil corporations,” according to Kommersant, which is struggling to expand its cryptocurrency mining operation owing to legal uncertainties.
Putin thinks it’s too early to speak about utilizing cryptocurrency for oil trade.
Gazprom Neft, Russia’s third-largest oil producer, is said to be the sole firm engaged in such a scheme, having generated 1.8 billion bitcoins in only one month last year. The Russian government owns the majority of the company via the Federal Agency for State Property Management and Rosneftegaz.
Gazprom Neft did not immediately reply to a request for comment from Cointelegraph.
Entrepreneurs and politicians alike have hailed bitcoin mining as a solution to the wasteful habit of flaring related gas. Senator Ted Cruz of the United States has said that Bitcoin has a “enormous potential […] to harness that gas instead of squandering it.”
The ez blockchain is a proposal to mine Bitcoin with associated gas. It would make mining more efficient and profitable for miners.
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