The future of crypto mining in Canada hangs in the balance, as many provinces could restrict new projects concerning energy uses. Many crypto entrepreneurs focused on BTC have been coming to the great white north for a rich supply of clean, cheap energy in British Columbia and Quebec provinces.
Crypto Mining and Canada
For a long time, Canada has had the tag of a crypto mining friendly. However, concerns regarding these miners’ energy usage are surfacing, mainly regarding energy distribution for the local population. Several Canadian provinces are trying to limit new cryptocurrency mining operations.
Speaking to the media, Dan Roberts of Iris Energy, who has three mining facilities in British Columbia (BC), says that a mining operation needs cool temperatures, stable laws or legal framework, a fair and effective judicial system, and renewable energy. He also sees advancement in economic prosperity coming from crypto mining in areas like B.C., probably because they enjoy surplus electricity.
Adding further, he said a whole industry could be built around these facilities. Many regional towns devastated by the end of the pulp-paper mill era can be visited. Rehiring locals and retaining their services could be very helpful for the communities and society.
Future of Crypto Mining Uncertain
Many provinces have halted new projects because of excess power consumption. Mining sites need large amounts of electricity to power an array of computers that do complex equations to verify crypto transactions on the blockchain ledger. At the time, British Columbia had seven operational mining sites, and another six were in an advanced stage of development.
Manitoba has imposed a moratorium of 18 months on connecting any new crypto-mining projects with their electricity grid. This decision halted 21 projects, which in theory, would have consumed the same amount of power required for 570,000 homes. Manitoba also halted all new crypto operations after Hydro-Quebec increased their rates for mining operations. At the same time, Ontario suggested that crypto miners be excluded from incentive programs which would have allowed them to save money.
Canada Not Friendly to Crypto Miners Anymore?
Canada is ranked fourth in terms of computing power that contributes to the blockchain network, after the US, China and Kazakhstan. But their latest decision of rationing electricity to miners may hamper the country’s position as a major player.
Sheldon Bennett, CEO of DMG Blockchain Solutions and member of the Canadian Digital Asset Mining Coalition, an advocacy organization, argued that, after this decision from the government, he must either take some drastic decisions or pause the operations, at least until the rules are clear. Further clarity will be required to decide whether to remain in Canada or go elsewhere.
While speaking to the media, Josie Osborne, British Columbia’s Energy Minister, said that the decision to impose the moratorium was to give the province a chance to consult with the industry for proper bifurcation of energy usage. However, B.C. is an energy surplus area for now, which might change in the future.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/03/19/canadian-provinces-turn-on-crypto-miners-ration-electricity-usage/