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Cryptocurrency mining on a volcano brought record profits for the whole country

11:44 am, May 16, 2024

El Salvador is actively mining cryptocurrencies using innovative geothermal energy. Since 2021, the country has mined almost 474 bitcoins by combining financial technology with renewable energy.

El Salvador’s agency responsible for bitcoin mining says it has achieved good results. A geothermal power plant located near the Tecapa volcano houses 300 processors. These devices use geothermal energy to mine bitcoins, confirm transactions, and ensure network security. The plant produces 102 MW of electricity, of which 1.5 MW is used for BTC mining.

Mining using clean energy is different from traditional methods based on fossil fuels. It fits into the concept of a green transition and shapes a more sustainable and cleaner future for cryptocurrencies.

In 2021, El Salvador recognized bitcoin as legal tender. The global community had a mixed reaction to this step. Many agencies, including the International Monetary Fund (IMF), criticized this decision, calling it risky. However, there are those who believe that this approach is the future.

«Every country will mine bitcoin at some point! Someone will start earlier, someone will start later,» said Julian Liniger, co-founder and CEO of the artificial intelligence platform Relai.

Despite international criticism, the government is actively developing the cryptocurrency infrastructure. Currently, El Salvador’s BTC reserves are estimated at $ 360 million, while mining has helped to replenish the country’s wallet by $ 29 million.

In December, the government of El Salvador and the issuing company of the largest stablecoin Tether USD (USDT) launched a joint program called Adopting El Salvador Freedom Visa Program. From now on, people can obtain El Salvadoran citizenship for investing $ 1 million in bitcoin or USDT in the country’s economy.

According to the program, 1000 people can participate in obtaining the so-called «golden» visa of El Salvador every year, the holders of which can later apply for citizenship. The government plans to earn up to $ 1 billion a year from this program, and all the money will be used for economic and cultural development, as well as social programs to improve living standards in the country.

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