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Nuclear and Hydroelectric Power Plants can serve as mining farms for providing necessary capacities for state blockchain projects, claimed the head of the Russian State Corporation "Bank for Development and Foreign Economic Affairs (Vnesheconombank, VEB)" Sergey Gorkov.

He spoke on the issue after the first meeting of the working group on blockchain employment for state and corporate governance.

“We consider several sites (for mining provision – CoinFox) and they are indeed located in the north … there is also the Bilibino Nuclear Power Plant”, Gorkov said. He specified that Hydroelectric Power Plants are considered as potential sites as well. According to Gorkov, mining centres “should not be in abundance”. 

Gorkov explained that concerning state projects mining does not employ profit via cryptocurrency mining. In this case, mining means the process that constantly backs the functioning of the blockchain technology. “Blockchain constantly needs mining for verification (of blockchain transactions – CoinFox)” Gorkov said. He added that these centres can also be used for the needs of the Central Bank of Russia that participates in the creation of the blockchain-platform “Masterchain” designed for banks.

According to Gorkov, the choice of the site will depend on the electricity cost in the region and the temperature in its territory – for mining it should not be less than 40 degrees below zero. It is expected that the first suggestions for infrastructure creation the state corporation will present during the next meeting of the working group.

The working group on blockchain employment for state and corporate governance is headed by the first vice prime-minister of Russia Igor Shuvalov. The group comprises in particular, the minister of Economic Development Maxim Oreshkin, the minister of Finance Anton Siluanov and the minister of Communications and Mass Media Nikolay Nikiforov.

During the meeting Sergey Gorkov claimed that the VEB group intends to unite all the efforts of state, business and experts for blockchain development in Russia. In September 2017 VEB together with MISiS (National University of Science and Technology) plans to launch the Centre of Competence on Innovative Materials and Disruptive Technologies, focused on blockchain.

It was revealed earlier that VEB received 6 billion RMB from the National Bank of Development of China for the support of Russian innovative projects including blockchain development.