Following the approval of the bill to make Bitcoin the legal currency of El Salvador, the president of the nation gets to work and orders the creation of a crypto mining plan with geothermal energy, 100% clean and renewable.
Nayib Bukele, president of El Salvador, has given precise instructions to LaGeo, the country's state-owned geothermal energy company, to develop an energy production plan that would provide Bitcoin mining companies with very cheap, 100% clean and renewable energy that is completely free of carbon emissions.
El Salvador, a small country in Central America, is located on the Pacific Ring of Fire, so its geography is full of volcanoes. According to data from the country's Ministry of Environment and Natural Resources (MARN), there are more than 170 volcanoes in El Salvador, although only about 14 are active. This makes El Salvador one of the countries with abundant sources of geothermal, natural and renewable energy, capable of sustaining bitcoin mining without causing damage to the environment.
This Wednesday, El Salvador marked an important milestone in the history of the world and of the cryptocurrencies, , becoming the first country to recognize and adopt Bitcoin (BTC) as legal tender for the exchange of products, goods and services. Remember that Bitcoin is an open-source and decentralized cryptocurrency that is not minted or controlled by any government or central bank.
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Volcanoes' energy for Bitcoin
Bukele's intentions regarding Bitcoin are very clear. Since his appearance at the conference Bitcoin 2021 Miami, the president of El Salvador promised to make the world's most powerful cryptocurrency legal tender. Well, Bukele's promise was fulfilled this Wednesday when an overwhelming majority in the Legislative Assembly voted in favor of the bill that officially makes Bitcoin the country's legal tender.
Now, with Bitcoin as the official currency, Bukele aims to turn El Salvador into a powerful mining center for the cryptocurrency, powered by the energy and heat of the Earth.
On his Twitter account, the country's president reported on the progress being made in this area. Bukele stated that a team of engineers dug a new well that will produce 95 MW (megawatts) of clean energy, coming from volcanoes and 100% free of carbon emissions, to sustain bitcoin mining in the region. According to him, the team is designing a complex cryptocurrency mining center around said well, which only expels pure water vapor.
El Salvador has been using the Earth's heat to produce clean energy for over 50 years.
The crypto community is euphoric applauding the initiatives promoted by President Bukele, who has also issued a series of statements benefits for cryptocurrency entrepreneurs who come to the country. Among these, Bukele has promised not to tax capital gains obtained through Bitcoin and also to give permanent residency to cryptocurrency companies and entrepreneurs who want to make a living in the country known for its excellent tropical climate and beautiful beaches.
The new policy of El Salvador, Bitcoin territory
As indicated by the new law, all businesses, shops and other economic agents in the country are required to accept payments in bitcoins, although the reference currency will continue to be the dollar and the Development Bank will have a fund to absorb the risks of businesses and citizens who operate with bitcoin and do not want to be left with the cryptocurrency, known for its volatility.
With its new policies, El Salvador seeks to boost the economy in the short, medium and long term. First, the adoption of Bitcoin will boost the generation of new jobs and help provide financial inclusion for thousands of citizens who are outside the formal economy. In the medium and long term, Bukele said he hopes that “This small decision can help us push humanity, at least a little, in the right direction.”
The declaration of Bitcoin as legal tender in El Salvador has caused its price to rise, after testing $30.000 per unit this Wednesday. At the time of this edition, BTC is trading at a value of $36.600, recovering by 14% in the last few hours.
Continue reading: Bitcoin mining, an opportunity for the production of clean and renewable energy
