Chechen Republic Seeks to Open an International Mining Pool
September 23, 2018 by Jeff Fawkes
A crypto-cluster is planned for construction in the Chechen Republic. The first step will be a pool that will unite resources from miners in the Eurasian Economic Union zone. This will allow savings of three to five percent, by cutting commissions to foreign service providers.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
The Crypto Chechnya Project in the Chechen Republic
Chechen Republic President Ramzan Kadyrov and Russian Association of Blockchain and Cryptocurrencies (RABC) CEO Yurii Pripachkin have signed an agreement to create a Chechen-based mining pool. The office press-secretary Alvi Karimov has confirmed the deal.
A mining pool will be the first step in bringing to life a project called Crypto Chechnya, intended to bring blockchain technology to the region’s economy. The economic branch of the government reviewed a draft of the law in late August.
Project leads intent to attract miner resources from Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan. According to previous calculations by Pripachkin, by uniting the mining power of several countries in one pool, the community can achieve significant profits by cutting third party expenses, which sap between three to five percent of funds.
Accordingly, the tax income from mining in the republic could increase the Chechen annual budget by up to ten percent. There are more than 350,000 miners and up to several thousand farms in Russia and Chechnya.
The pool will be working under the terms of the Bank of Russia regulatory framework. However, to fully take place, the regulations must be passed in the Russian Gosduma later this Autumn. RABC also proposed allowing Chinese and Korean exchanges to obtain the right to open legal crypto entities within Russia and the Chechen Republic, as well as offering them e-residency.
Internet Businessman Dmitry Marinichev Says Pool is Not Enough
Dmitry Marinichev claims it is not difficult to create pools. They are only web services which miners use for proportionate and predictable coin (or token) generation. The pools then distribute mined coins among participants according to the rules set by the pool owner. According to Marinichev, there is also a need to find people who will agree to follow the pool rules.
”The creation of such pool must be backed by computational power. And for sufficient amount of participants to take part in it, they must have identical economical, political and ethical views. There’s already a Bitcoin-Russia pool in the space, which unites Eurasian miners. So its unclear to me who exacly will participate in such new pool”.
He also noted that mining pools in the country have huge potential because of the cold climate in many regions and cheap electricity.
Will the Chechen government fully deploy the new Crypto Chechnya Project? Let us know your thoughts in the comments section below.
Images by Jeff Fawkes, Flickr