President Bukele Believes Geo-Thermal Energy Can Power El Salvador’s Bitcoin Ambitions
El Salvador will utilize newly discovered geothermal resources to build a Bitcoin( BTC) mining hub in the country. Salvadoran President, Nayib Bukele, revealed this in a tweet celebrating the digging up of a well that’ll provide about 95 MW of steam power.
Mr. Bukele took pride in the facility, stating that it would provide 100% clean energy from the country’s volcanoes. He suggested that he’d started designing a BTC mining hub around the well.
I’ve just instructed the president of @LaGeoSV (our state-owned geothermal electric company), to put up a plan to offer facilities for #Bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos 🌋
This is going to evolve fast! 🇸🇻 pic.twitter.com/1316DV4YwT
— Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021
Mining BTC Using Geothermal Power
Again, the President stated that he’d instructed the President of Leo SV, the country’s geothermal electric company, to set up a plan to offer facilities for BTC mining using the resource.
El Salvador has been making headlines in the crypto space lately. His tweet came hours after the Salvadoran Senate had passed a Bukele-Sponsored bill making BTC El Salvador’s legal tender.
Implications Of El Salvador Senate’s BTC Vote
The passing of the bill will have far-reaching implications in the country’s financial sector. For starters, it signals a shift from the USD as the nation’s legal means of exchange.
Additionally, it sets the stage for mass adoption of BTC by scrapping capital gains tax accruing from its ownership. The bill further compels every economic agency within the state to accept BTC payments in exchange for goods and services offered.
BTC Would Spur Salvadoran Economy
In pushing the new legislation, Mr. Bukele had insisted that the Shift to BTC would Spur the economy by attracting investors. These would receive incentives to move their ventures to the country.
Also, it would enhance financial inclusion for the majority of Salvadorans who are outside the formal economy. Besides, the move would increase remittances from abroad, helping tackle the country’s poverty problem.
Global Push For Green Cryptos
Recently, the push for the adoption of greener cryptos has gained traction. There’s been a growing concern about the increased usage of fossil fuels to power crypto mining ventures. BTC, in particular, has come in for special condemnation because of its huge carbon footprint.
Globally, conservationists are pushing for environmentally sound ways to transact in cryptos. El Salvador’s move will therefore be a welcome boost in their endeavors.
El Salvador’s Industrial Parks
Besides his tweets, Mr. Bukele discussed these developments with 20,000 listeners in a Nic Carter-hosted Twitter Spaces Room. In the conversation, the President affirmed that developing the nation’s geothermal resources went beyond Bitcoin mining.
To him, it was critical to develop infrastructure around those resources for the nation’s growth. He agreed that the country lost most of its generated electricity to oversupply and transportation to urban areas. To mitigate this, his government Planned to set up industrial parks around the plants.
Investors would be encouraged to set up their factories within the parks. They’d therefore tap into the clean and affordable electricity within. Mr. Bukele sees the parks as an attractive proposition for miners from across the globe.