To bring you the best content on our sites and applications, Meredith partners with third party advertisers to serve digital ads, including personalized digital ads. Those advertisers use tracking technologies to collect information about your activity on our sites and applications bitcoin farming legal across the Internet and your other apps and devices. In a former Soviet car factory in the southeast of Moscow, the scene is like one out of a science fiction movie.
Tall shelves are stacked with computer processors jutting out into the middle of the space, spewing gusts of hot air. If you’ve ever observed your laptop fan kick in, multiply that by about a thousand. The 9,000 square meter warehouse is where boxy Soviet cars used to roll off the production line. In 2014, Dmitry Marinichev was appointed to the role designed to act as a liaison between internet companies and the government. He was also recently named one of four potential presidential candidates from Russia’s “Party of Growth,” a more Kremlin-friendly opposition party campaigning on a pro-business platform. Marinichev is currently building what’s called the Russian Mining Center, a project he hopes will put Russia on the cryptocurrency map. A circular arrangement of Bitcoin “mining” computers at the Russian Mining Center in Moscow.
Cryptocurrencies are virtual “coins” that are “mined” by computers completing complex algorithms. 10 million dollars into the project. 43 million in an Initial Coin Offering — the cryptocurrency equivalent of an IPO — and plan to add around five times as many “mining computers” to their facility by the end of the year. Stacks of bitcoin “mining” computers run 24 hours a day. Their job is not only to unlock new bitcoins, but to support all the transactions on the bitcoin network. The team manufactures the computers themselves. First of all, it’s business,” Marinichev told CNN.
But this is a new milestone in the development of mankind. Russia is still a laggard when it comes to the official acceptance of cryptocurrencies. Europe, it is currently illegal to pay for anything with cryptocurrencies in Russia or convert them into rubles. And the central bank is not budging. The central bank said it was “premature” to consider legalizing cryptocurrencies as a financial instrument.
In October, the deputy governor of the Bank of Russia said the bank was considering restrictions on websites that sell cryptocurrencies. Marinichev is hoping his project will prove to Russian authorities that cryptocurrencies, and the blockchain technology that powers them are a critical part of the country’s future. Employees at the Russian Mining Center build motherboards for specialized cryptocurrency “mining” computers. He’s already seeing signs of progress.
In June, President Putin met with Vitalik Buterin, the Russian-Canadian inventor of Ethereum, the closest competitor to Bitcoin. The meeting sent a flutter of excitement through the cryptocurrency community in Russia. The Kremlin read-out of the meeting stated the following: “The President supported the idea of establishing ties with possible Russian partners. Putin recently held a high-level meeting with his finance minister and central bank chief on cryptocurrencies warning of “serious risks,” and could be used by criminals. At the same time, however, he insisted Russia needs to come up with a way of regulating them. That job has fallen to a special working group in the Russian State Duma, the lower house of parliament. Elina Sidorenko, a criminal law professor who heads up that group, said her biggest concern was initially the anonymity of transactions and the difficulty of applying anti-money laundering standards to cryptocurrency payments.
Mining” computers line the shelves at the Russian Mining Center in Moscow. But she told CNN new challenges keep appearing. Still, Sidorenko is convinced Russia can’t afford to ignore the potential benefits of cryptocurrencies to “advance the Russian economy. In addition to oil and natural resources, we have IT specialists, technologists, developers and computer geniuses conquering the world, so we should make use of this resource,” she said. Russian cryptocurrency entrepreneurs are already making an impact. Alexander Ivanov is a former physicist, who now runs Waves, a blockchain platform that allows users to create tokens for things like loyalty programs and vouchers, trade in cryptocurrencies, and make payments. Waves was recently behind a blockchain loyalty program from Burger King in Russia called “Whoppercoin,” where customers could accumulate digital tokens to redeem in store.