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▲ Caribbean Sea, Renewable Energy, Cryptocurrency Mining/AI Generated Image
Colombia has unveiled a plan to develop its Caribbean coast into a Bitcoin (BTC) mining hub, leveraging its surplus renewable energy, introducing a new variable to the South American mining landscape.
According to cryptocurrency media outlet Cointelegraph on May 6 (local time), Colombian President Gustavo Petro stated via X (formerly Twitter) that Colombia's Caribbean coast could become a Bitcoin mining hub by utilizing surplus renewable energy. President Petro suggested that Caribbean coastal cities such as Barranquilla, Santa Marta, and Riohacha could attract Bitcoin mining facilities.
President Petro said that the Bitcoin mining business could be a "huge impetus" for the development of the Caribbean region. He also proposed that the Wayúu community, Colombia's largest indigenous community primarily residing on the Caribbean coast, could be co-owners of the project.
Bitcoin mining analysts, including Jaran Mellerud, managing partner at Hashlabs, have assessed that the mining industry can generate significant economic effects when emerging countries convert unused power into cash flow. As commercial mining companies in the U.S. expand into artificial intelligence and high-performance computing in pursuit of higher profitability, there is increasing room for countries with lower electricity rates to expand their share of the Bitcoin network's hashrate.
President Petro's remarks came after Alessandro Cecere of Luxor Technology mentioned the case of Paraguay. Cecere stated that Paraguay had increased its Bitcoin hashrate share to 4.3% after utilizing hydropower from the Itaipu Dam. Paraguay is currently ranked as the world's fourth-largest Bitcoin mining country, following the U.S., Russia, and China.
According to a report published by the World Bank in April 2024, Colombia produces up to 75% of its total electricity from renewable energy sources, which is more than double the global average. Cointelegraph reported that by utilizing these renewable energy sources, Colombia could also alleviate President Petro's concerns that fossil fuel-based Bitcoin mining contributes to global warming and climate collapse.
However, President Petro's term ends in August. He has served as the President of Colombia since August 2022 and, due to constitutional restrictions, will not run in the next presidential election on May 31. Data from the prediction market Kalshi suggested that left-leaning Senator Iván Cepeda Castro and conservative lawyer Abelardo de la Espriella, an advocate for free markets, are strong potential successors, but neither candidate has made clear public statements regarding Bitcoin or digital assets to date.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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