El Salvador sees greener crypto-currency mining in its future By Reuters

El Salvador sees greener crypto-currency mining in its future By Reuters


2/2
© Reuters. A banner that reads: “We accept Chivo and Bitcoin” is seen outside a bussines in Antiguo Cuscatlan, El Salvador, September 17, 2021. REUTERS/Jose Cabezas/Files

2/2

SAN SALVADOR (Reuters) – El Salvador’s unfolding experiment as a first-adopter of the crytocurrency bitcoin could be increasingly powered by new streams of renewable energy, the chief of the country’s hydroelectric commission told reporters on Friday.

Energy-intensive cryptocurrency “mining” is done by computers, and has come under criticism from environmentalists as a big source of demand for mostly fossil fuel derived electricity.

Last month, El Salvador became the first country to adopt bitcoin as legal tender alongside the U.S. dollar, which for years had served as the country’s sole official currency.

Daniel Alvarez, president of the state-run Lempa River Hydroelectric Executive Commission (CEL), said El Salvador has the potential to generate electricity through hydroelectric, solar, wind and tidal power projects.

“The possibilities are endless here, it’s just about willpower and that we have the means and the ability to start these projects,” Alvarez said.

The Salvadoran government in September began harnessing geothermal energy for bitcoin mining from a plant at the base of the Tecapa volcano, 106 kilometers (66 miles) east of the capital, that is owned by a company which is part of CEL.

The plant generates about 102 megawatts, and the government plans to add another five megawatts next year. At present, 1.5 megawatts are being allocated for bitcoin.

Alongside the plant, officials have set up a room inside a shipping container to house 300 computers that process cryptocurrency transactions.

The Tecapa plant along with another geothermal plant in northwestern El Salvador supply between 23% and 24% of the national power grid, according to authorities.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *