El Salvador Eyes Up Greener Bitcoin Mining Opportunities

In El Salvador, the government intends to build Bitcoin mining facilities using volcanoes, which produce zero-emission, renewable energy.

El Salvador and Bitcoin

In early June, El Salvador’s President Nayib Bukele declared that he aims to send a bill to Congress to make Bitcoin legal tender. Only four months later, the country passed the bill and officially adopted Bitcoin as legal tender, becoming the first nation in the world to do so.

Bukele, a Bitcoin enthusiast, believes the flagship cryptocurrency can facilitate lower remittance fees, attract investment, and promote financial innovation. “This is going to evolve fast!” Bukele said on Twitter.

However, top international financial institutions like the IMF and the World Bank seem to dissent. Gerry Rice, the IMF’s spokesperson, warned that the adoption of Bitcoin as legal tender “raises a number of macroeconomic, financial, and legal issues that require very careful analysis.”

The World Bank also slammed the move, citing environmental concerns around Bitcoin.

“While the government did approach us for assistance on Bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings,”

a World Bank spokesperson said.

Nevertheless, El Salvador continued to double down on its Bitcoin bet, unveiling intentions to use streams of renewable energy to mine BTC.

A Push for Green Bitcoin Mining

Bitcoin mining is an energy-intensive process. According to the New York Times, Bitcoin consumes 0.5% of all energy consumption worldwide, which is approximately seven times more than Google’s entire energy consumption per year.

This extensive energy consumption has prompted numerous environmentalists to rage on the flagship cryptocurrency and criticize it over its carbon footprint. In fact, these concerns were ostensibly the reason behind China’s rigorous clamp down on crypto mining this year, as well Elon Musk’s decision to drop accepting Bitcoin as a payment.

All of this has pushed miners to look for green and renewable sources of energy. In the US, for instance, miners are inking deals with nuclear power plants to utilize the large amount of excess green energy that would otherwise go wasted for mining BTC. El Salvador, too, aims to use streams of green energy generated from volcanoes to power Bitcoin mining facilities.

El Salvador to Mine Bitcoin Using Volcanoes

After revealing his big plans to embrace Bitcoin, Bukele dropped yet another bombshell. On June 9, he tweeted that El Salvador aims to take advantage of its natural volcanos, harness their energy, and use it to power Bitcoin mining facilities. He said at the time:

“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.”

Despite being the smallest country in Central America, El Salvador is home to 30 volcanoes. Reportedly, 20 of those volcanoes, which belong to the circum-pacific Ring of Fire, are potentially active, enabling El Salvador to harness that power and generate geothermal energy to mine Bitcoin.

In El Salvador’s Berlin city there is a geothermal plant composed of 16 deep shafts from which steam circulates and makes turbines function. Those turbines can generate up to 107 megawatts, among which 1.5 megawatts is dedicated to Bitcoin mining, powering almost 300 mining rigs.

“We are not reducing the energy supply of El Salvador, on the contrary, we are increasing it, and from the amount that we have increased, we have taken these 1.5 megawatts to start this first step with mining,”

said Daniel Alvarez, president of for the Rio Lempa Hydroelectric Executive Commission (CEL).

Leave a Reply

Your email address will not be published.

Related Articles
Read More

How to Fix Bitcoin Unconfirmed Transactions

An unconfirmed Bitcoin transaction can occur when you choose a smaller miner price as a transaction fee for the Bitcoin transaction. As a result, the miners may not confirm the transaction. This is one of the major issues with Bitcoin trading, the other issue being...
Read More

Why Does Bitcoin Pump And Alts Dump?

By and large, it is not unreasonable to expect the entirety of the crypto market to follow the lead of its flagship cryptocurrency, Bitcoin. This is generally true when things start going downhill. However, it gets trickier when Bitcoin shoots through the roof. It is...
Read More

Vietnam Crypto Mining Demand Rockets After China Ban

Following the drop in Bitcoin price in May this year, crypto mining activities significantly reduced in Vietnam. However, this changed from the time Bitcoin began to progressively surge in value in August, reversing the entire scenario in Vietnam. There has been a notable increase in...
Read More

Lightning Network Hits Milestone: Over 3400 BTC Locked

The Bitcoin Lightning Network recently hit a major milestone after reaching a new all-time high. The layer 2 payment system for Bitcoin now has more than 3400 Bitcoin locked. Lightning Network Hits ATHThe adoption of Lightning Network has grown significantly over the past year. Lightning...