El Salvador will mine BTC with volcanoes according to the president of the country Nayib Bukele as we are reading more today in our Bitcoin news.
El Salvador president Nayib Bukele has just made Bitcoin a legal tender in the country and announced today that he directed the state-owned electricity company LaGeo to offer facilities for BTC mining with cheap, 100% clean, and 100% renewable energy from the volcanoes. El Salvador will mine BTC with the power of its volcanoes as the new solution proposed by Bukele last week after passing the law upon its introduction to the Legislative Assembly.
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
The law recognized the cryptocurrency as a legal tender and mandated that businesses accept BTC as payment unless they are in the rural parts of the country and have no internet access. Furthermore, it exempts Bitcoin trading from capital gains taxes and now, the country became the new favorite place for all bitcoin lovers. However, Bukele is authoritative so maybe not the perfect place for all BTC holders perhaps?
As detailed by Human Rights Watch in May, the president and his allies completely removed the members of the ostensibly independent Constitutional Court as a part of the Supreme court and the attorney general. El Salvador however has over 20 volcanoes and few of them are active. La Geo uses volcanoes to harness geothermal energy which doesn’t make it a new concept. Genesis Mining in Iceland harnesses underground heat to produce carbon-free electricity and this became a quick selling point as the environmental costs of BTC came under fire from companies like Tesla as well as governments that promised a stateless currency is worth the energy expenditure.
Nayib Bukele, Source: Wikipedia
El Salvador imports 25% of its electricity now and according to the International Fiannce Corporation, it is one of the biggest buyers in the region. Moreover, IFC reported that half of the companies in El Salvador say that the high costs of electricity are one of the biggest barriers to growth because it increases the prices of products and services. Bukele’s instructions will add a strain to the electrical grid and will require El Salvador to import even more electricity even if the power produced by BTC mining facilities is clean.