As Bitcoin approaches a new all-time high, Russian authorities are becoming increasingly interested in cryptocurrencies.
The Russian government is contemplating launching a new initiative to generate Bitcoin (BTC) using natural gas.
According to reports, Russia’s Deputy Minister of Industry and Trade, Vasiliy Shpak, has submitted a proposal to the Russian central bank and the Ministry of Digital Development to mine cryptocurrency using the country’s oil field equipment.
The petition, according to Kommersant, filed on Sept. 7 and asked the government for input on an idea that originated with local oil and gas firms.
The companies proposed using related gas to power adjacent Bitcoin mining computer facilities. This sort of natural gas is a byproduct of oil drilling, but due to the prohibitively high cost of appropriate gas infrastructure, it is frequently squandered by flaring, which involves simply burning off the extra gas.
The Russian government is unable to fulfil objectives owing to a lack of essential infrastructure
The Russian government has sought to minimise emissions by reducing gas flaring. However, it has been unable to fulfil objectives owing to a lack of essential infrastructure.
Through “hybrid modules of digital currency extraction”, Shpak allegedly highlighted in the letter that using the gas for Bitcoin mining may potentially increase the efficiency of natural gas use in thermal generating.
Russian President Vladimir Putin warned last week that using cryptocurrency to settle oil deals was “a little early”. The president also acknowledged the value of cryptocurrencies in terms of worldwide money transfers.