The Crypto Valley project – an offshore zone for trading digital currency within Russia – will fetch about RUR 70 bln ($1 bln) a year to the state coffers, and that’s only from the VAT for electricity consumption, BitCluster mining company reports.
The Crypto Valley project debates began a year ago. According to the Ministry of Finance, crypto trading can be organized in Vladivostok, Kaliningrad, Crimea, Russky Island and in other regions. The crypto-offshore can run entirely on the local hydropower plants; mining centers and blockchain parks should be placed next to them. According to experts, the power consumption in the valley would be about 1 GW: with the price of electricity at RUR 2 ($0.03) per kWh, the profit from the VAT would exceed RUR 292 mio ($4.4 mio) per month. The classic mining device – Antminer S9i – consumes 1,350 kW/h.
“In 2018, electricity surplus in Russia was 20 GW, which could power 14.8 mio devices like Antminer S9i. Thanks to the VAT, the country’s budget can be replenished annually by about RUR 70 bln,” the company said.
In addition, the project will create about 1,000 jobs. Warming can be a side effect of the crypto valley: last year, American researchers concluded that mining would increase the temperature by 2 degrees in 20 years.