Belarus President Alexander Lukashenko has recently made a bold move by directing his administration to explore Bitcoin mining in order to leverage the country’s surplus energy. This decision was announced on March 4 by the state-owned national news agency BeITA.
Lukashenko emphasized the importance of utilizing excess electricity for cryptocurrency mining, citing the rising demand and potential profitability in the sector. This directive was given during the appointment of Energy Minister Alexei Kushnarenko, indicating the government’s increasing interest in digital asset opportunities.
The President mentioned that several proposals regarding Bitcoin mining had been brought to his attention, pointing to the United States’ plans for a national crypto reserve as an indicator of the sector’s growing significance. He stated, “Look at this mining. More and more people are turning to me. If it is profitable for us, let’s do it. We have excess electricity. Let them make this cryptocurrency and so on.”
In light of this directive, Lukashenko outlined two possible approaches for Belarus: either engaging in cryptocurrency mining directly using state resources or selling electricity to investors for their mining operations.
The decision to focus on Bitcoin mining aligns with a global trend of government involvement in the crypto sector. Countries like Russia have already implemented regulations to oversee mining activities and integrate them into formal economic structures.
A recent study conducted by the Perryman Group revealed that the cryptocurrency mining sector has contributed significantly to the economy, generating over 31,000 jobs and more than $4.1 billion in gross economic output annually in the US.
Bitcoin environmentalist Daniel Batton has highlighted new peer-reviewed research demonstrating the environmental benefits of mining. The study found that mining operations utilizing wasted, surplus, or renewable energy sources can help promote cleaner energy usage and reduce the carbon footprint of power production.
These findings suggest that Bitcoin mining can align economic incentives with sustainability goals by utilizing stranded or renewable energy sources. It challenges the perception of mining as an energy-intensive burden and instead presents it as a flexible mechanism that supports sustainable energy practices.
Moreover, this approach aligns with circular economy principles by maximizing resource utilization and minimizing waste. By exploring Bitcoin mining, Belarus could potentially tap into a lucrative industry while also promoting sustainable energy practices.