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    Russia’s Bitcoin, AI play with BRICS is ‘game theory’ in motion: Analyst

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    Russia is partnering with data centre operator BitRiver to establish Bitcoin mining and AI computing facilities in BRICS countries. This follows similar moves by other countries, including Bhutan, El Salvador, and the UAE, to mine Bitcoin using state resources. The move could lead BRICS nations to trade globally using Bitcoin. Three BRICS nations – Argentina, Ethiopia, and the UAE – are already mining Bitcoin with state resources. The announcement comes as Russia prepares to lift its Bitcoin mining ban, though miners will have to register with Russia’s Federal Tax Registry.

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    Russia is making moves to set up Bitcoin mining and AI computing facilities in BRICS countries, and this might just inspire other countries to mine Bitcoin using state-owned resources, according to an industry expert. Nico Smid from Digital Mining Solutions thinks that countries will follow the lead of El Salvador, Bhutan, Ethiopia, the United Arab Emirates and Russia to dig Bitcoin using underused energy.

    At a BRICS Business Forum held in Moscow in mid-October, Russia’s national wealth fund joined forces with BitRiver, a Russian data center operator, to plan these mining and AI facilities for BRICS countries. This move could mean that BRICS nations end up conducting global trade using Bitcoin – a very different approach compared to the local currency basket and gold-backed currency ideas originally considered.

    If you’re not familiar with BRICS, it’s a group of rapidly developing economies, including Brazil, Russia, India, China, and South Africa. The group has grown to include Egypt, Iran, Saudi Arabia, Argentina, Ethiopia, and the UAE, and the group’s combined GDP is now bigger than that of G7 nations, a rival economic group led by the US, Japan, and Germany.

    Interestingly, this news didn’t gather a lot of attention because everyone’s attention was on the upcoming US election, said Matthew Sigel, VanEck’s Head of Digital Assets.

    Sigel told CNBC that other countries urgently want to find a way to work around the US’s fiscal policy, which he considers irresponsible. Already, three BRICS members, Argentina, Ethiopia and the United Arab Emirates, have started to mine Bitcoin using state-owned resources.

    According to Alen Makhmetov from Hashlabs Mining, Russia’s Bitcoin and AI plans could be a part of a bigger strategy to get ahead in global politics. Makhmetov says that Russia sees an opportunity to spread its influence as a lot of the regions have limited IT infrastructure.

    Sigel also thinks this move will work in Bitcoin’s favor, as a big portion of the network’s hashrate is currently concentrated in the US.

    This news comes as Russia is set to lift its Bitcoin mining ban on Nov. 1, but there are some conditions. Bitcoin miners will have to register with Russia’s Federal Tax Registry and provide lists of their machine models and wallet addresses. As for the mining ban lift, it’s not a guaranteed success, as Russia is grappling with high electricity costs and a fluctuating ruble.

    Source: Cointelegraph

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