After the legalization of Bitcoin in 2021, El Salvador entered the stage of using digital money for investment and development. One of the recent prominent projects is the construction of a Bitcoin mining farm using renewable energy.
mining farms Bitcoin According to Reuters, the public-private joint venture project will invest 1 billion USD to build one of the largest in the world. Vocalno Energy says the project will be started with an investment of $250 million and backed by Bitcoin industry leaders along with renewable energy developers.
Volcano Energy President Max Keizer said the money will go towards the construction of a 241 MW wind and solar power project in northwestern El Salvador that will power a Bitcoin mining farm.
Bitcoin mining has always faced heavy criticism from environmental activists. The process of mining Bitcoin consumes a huge amount of electricity because it needs to use high-powered computers connected to the global network
This announcement comes two years after El Salvador’s President Nayib Bukele announced his decision to legalize Bitcoin despite the International Monetary Fund’s ( IMF ) warning about the regulatory risks associated with cryptocurrencies that would make the market more volatile. financial markets are fragile.
Bukele and Bitcoin advocates believe that cryptocurrency can create more jobs and attract foreign investment to El Salvador, which is one of the poorest countries in the Western Hemisphere. According to Volcano Energy, the El Salvador government will receive 23% of the revenue in the project, private investors hold 27% and the remaining 50% will be used to reinvest in infrastructure
Stablecoin issuer Tether is one of Volcano Energy’s investors. Tether CTO Paolo Ardoino said the company aims to drive investment in Bitcoin mining infrastructure and renewable energy production.