Russia continues to show interest in bitcoin and cryptocurrencies as the asset class continues to gain mainstream adoption.
According to a report by a local media outlet today, the Russian government is considering mining Bitcoin (BTC) with associated petroleum gas (APG).
As per the report, Russia’s Deputy Minister of Industry and Trade, Vasiliy Shpak, filed an application with the Central Bank of the Russian Federation (CBRF) and Ministry of Digital development on September 7, to use tools in the country’s oil fields for cryptocurrency mining.
The proposal entails the use of AGP in generating power which will subsequently be used to power large machines used in mining crypto.
“The implementation of the mechanism should increase the efficiency of the use of natural gas in thermal generation through hybrid modules for the “extraction” of digital currencies,” the letter said.
According to sources familiar with the matter, the initiative is said to have originally come from local oil and gas companies.
In the proposal, the companies noted that the government should permit using associated petroleum gas to power nearby data processing centers (DPC) for cryptocurrency mining.
The report also noted that the Ministry of Industry and Trade, the Ministry of Digital Industry, and the CBRF are currently discussing the project.
The associated petroleum gas is produced as a byproduct of oil extraction, but if there is no infrastructure to put it to productive use, it is burnt off for disposal which will bring about economic loss.
The Russian government has made an effort to put this associated petroleum gas into productive use but it lacks the necessary infrastructure to achieve that.
Russia Continues to Show Interest in Crypto
The Russian Federation continues to show interest in Cryptocurrency as the digital asset class nears mainstream adoption.
Just a day ago, Coinfomania reported that the country is looking at the possibility of replacing the US dollar with “digital assets” in the long run.
Russia’s Deputy Minister of Foreign Affairs, Alexander Pankin, noted that the move comes in line with the country’s efforts to put an end to sanctions imposed by the US government, which it does not encounter from other European countries.