Russian officials are considering proposal to mine Bitcoin with associated gas
The Russian government is considering a new project to mine Bitcoin (BTC) with accompanying petroleum gas.
Vasiliy Shpak, Russia’s Deputy Minister of Industry and Trade, reportedly presented a proposal to the Russian Central Bank and the Ministry of Digital Development to use the country’s oilfield equipment to extract electricity.
According to the Kommersant report, the September 7 proposal calls on the government to provide feedback on an initiative originally taken by local oil and gas companies.
The companies specifically suggest using the associated gas to power nearby data centers for Bitcoin mining. This natural gas is a by-product of oil drilling, but due to the enormous cost of proper gas infrastructure, it is often wasted through incineration, which wastes excess gas.
The Russian government has tried to contain the gas outbreak to reduce emissions, but is struggling to meet the targets due to a lack of infrastructure.
Related: Bank of Russia estimates Bitcoin inventory volume to be $ 36 billion leaving the bank
Using gas for bitcoin mining can improve the efficiency of using natural gas to generate heat through “digital currency mining integration modules,” Shpak noted in the letter.
Last week, Russian President Vladimir Putin said it was “a little early” to use cryptocurrencies to process oil transactions. The president also recognized the global remittance potential of cryptocurrencies.
This article is under development and will be updated.