The latest crypto news talk about the Prime Minister of Montenegro, Milojko Spajić, and his willingness to expand access to Bitcoin in the small Balkan country.
Montenegro in particular would be full of hydroelectric resources, only used to a small extent, and could allocate their use to cryptocurrency mining.
To finance the plan of opening up to innovation with hardware and energy storage, Spajić could start issuing the so-called “hydrobonds”, i.e. bonds paid in Bitcoin and based on renewable energy.
The member of the Montenegrin government met yesterday with the executives of JAN3, a technology company specialized in the development of hyperbitcoinization for businesses and states, to discuss the opportunities and challenges of this approach.
Montenegro, if it were to heavily invest in Bitcoin mining, could effectively become the next El Salvador of Europe.
All the details below.
The latest news in the crypto sector: Montenegro embraces Bitcoin mining through “hydro bond”
According to Bitcoin Magazine, yesterday the Prime Minister of Montenegro, Milojko Spajić, had a closed-door meeting with Samson Mow, a pioneer in blockchain technology, to discuss the possible opening of the country to a pro-Bitcoin culture.
Mow is now the CEO of JAN3, a cryptographic company specialized in strategic consulting for companies and governments that want to adopt innovative business systems centered around Bitcoin.
The name of the company takes its cue from the historical date of January 3, 2009, the day when the pseudonymous founder of Bitcoin, Satoshi Nakamoto, mined the so-called “Genesis Block,” which is the first block of the decentralized network.
The Montenegrin minister would like to exploit the country’s great hydropower resource, consisting of an abundance of rivers and lakes, which is partially unused and not monetized in any way.
It is estimated that the hydroelectric potential of Montenegro is around 5.6-6.1 TWh per year, of which only 20% is actually exploited.
The idea is to use the remaining 80% to do Bitcoin mining and promote financial inclusion in the small state by creating a pro-crypto community similar to the one developed in El Salvador.
The only problem with this forward-thinking vision is the high cost of hardware equipment to store renewable energy and transfer it to machines dedicated to block validation and BTC extraction.
Samson Mow suggested to the minister to bypass this entry barrier by issuing bonds, repaid directly in Bitcoin, with which investors can finance the construction of a dedicated facility for cryptocurrency mining.
In a historical moment in which decentralized currency approaches its fourth halving in history, investing in “hydro bond” could be particularly profitable given the 2024 forecasts on crypto market prices.
According to what was described at the end of the meeting by JAN3 in their company blog, this course of action would be a real panacea for the entire economy of the country.
“The idea of issuing Hydro Bonds linked to Bitcoin mining has highlighted the innovative thinking that could unlock new paths for economic growth.”
The news of Montenegro’s opening to energy optimization systems based on Bitcoin could lead to similar approaches by other governments, such as Serbia, as Serbian Prince Filip Karađorđević is open to potential investments to promote cryptographic innovation.
An opportunity for technological and sustainable development for the Balkan country
The news of the Prime Minister of Montenegro, Milojko Spajić, and his willingness to accelerate the adoption and use of Bitcoin, is motivated by the great economic and financial opportunities that the country enjoys, given the potential in the hydropower sector.
The young leader could be one of the first to issue Bitcoin bonds based on renewable energy as well as the first to fully utilize the natural resources of the Balkan state.
To tell the truth, there is another country that adopted a similar renewable strategy before Montenegro, as demonstrated by the recent approval by the Digital Assets Commission (CNAD) of the Volcano Bonds in El Salvador.
Bitcoin mining serves as a strong incentive to make the most of unused renewable energy by any entity, as the practice is highly profitable if there is no need to spend on electricity, which often represents the largest cost incurred by miners.
The plans of Montenegro, however, are not limited to becoming one of the world leaders in the extraction of digital gold, but imply the willingness to explore new solutions for the mainstream adoption of cryptographic culture among its citizens.
Spajić has expressed interest in building, parallel to his “hydro-bond” plan, a pro-BTC community similar to those of Bitcoin Beach, Jungle, and Lake, which serve as real adoption centers where residents use the cryptocurrency for daily economic transactions
The creation of a Bitcoin community in Montenegro would promote innovation and business development, attracting entrepreneurs and investors to the country.
It would also promote financial inclusion, providing access to digital currencies to those who have traditionally been disadvantaged by traditional financial institutions.
The foresight of Prime Minister Spajić in this context is related to his strong financial background; in the past, the politician has worked at Goldman Sachs and other prestigious financial institutions, acquiring valuable skills in the monetary field.
The wish for Montenegro is that it can become one of the most important Bitcoin hubs in Europe and can revive its economy thanks to mining the currency, whose forecasts are strongly rising for the next year.
Source: https://en.cryptonomist.ch/2023/12/15/crypto-news-montenegro-explores-hydroelectric-bonds-to-finance-the-countrys-bitcoin-mining/