Ethiopia Embraces Bitcoin: $250 Million Mining Project Sparks Global Interest

• Ethiopia gears up to kickstart its $250 million data mining project.
• Following the approval of mining activities, Ethiopia is spearheading Bitcoin mining on a continental scale.

The Ethiopian government is opening its arms to cryptocurrency mining as it attempts to keep up with the rising adoption of digital currencies on a global scale. The North-Eastern African country is officially making its way into the digital mining industry, particularly with the integration of Bitcoin mining into the nation.

The new development was announced by Kal Kassa, the current CEO of Hashlabs Mining, a leading cryptocurrency mining firm in Ethiopia.

As stated in his announcement, the Ethiopian Government will be collaborating with a notable Data Service firm in the nation to carry out the project. The project aligns with the nation’s commitment to fund a $250 million data mining project.

“It’s official! The Ethiopian Government will be mining Bitcoin through its partnership with Data Center Service PLC, a subsidiary of the West Data Group. The partnership will be for a $250 million data mining project in Ethiopia.” The announcement read.

The general reception from community members has been largely positive, with key figures remarking that the new development spotlights the increase in global adoption of Bitcoin. Other market participants added that the move will boost Bitcoin’s adoption in the country.

The announcement comes not long after Bloomberg reported that Ethiopia has been spearheading Bitcoin mining in Africa since 2022 after the government legalized mining practices in the nation.

Sustainable Bitcoin mining is at the core of Ethiopia’s mission

According to the report, Ethiopia appears to be attracting Bitcoin miners, most of whom are drawn by the cheap electricity fee charges in the country. While other countries like China have placed a ban on Bitcoin mining practices, Ethiopia has installed efficient generation capacity to boost mining activities for Bitcoin miners.

The country is also working towards the finalization of a project designed to increase mining capacity. The Grand Ethiopian Renaissance Dam (GERD) is being constructed with a generation capacity of 5,150 MV.

A handful of other African countries have also opened their doors to Bitcoin mining. Although there are no clear regulatory guidelines, many East African countries are engaging in long-term Bitcoin mining projects.

Kenya is one such country spearheading sustainable Bitcoin mining in Africa. Gridless, a Kenyan Bitcoin mining company, has launched a Green Africa Mining Alliance involving three other companies; Trojan mining from Nigeria, Sukuma Ventures from Kenya, and QRB Labs from Ethiopia.

The company recently released its “Blueprint for Bitcoin Mining and Energy in Africa” report, in which it detailed steps that can be taken to reduce the electricity-access gap in underprivileged regions through grids and Bitcoin data centers.

In the long term, Bitcoin mining will not be beneficial for both miners as countries enhance mining operations. While miners stand to gain stability with reduced fee charges, countries pioneering Bitcoin mining activities can increase economic advantages by running private mining firms.

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