- Ethiopian Bitcoin Mining Boom: 21 bitcoin miners, predominantly Chinese, sign power supply agreements.
- Foreign Exchange Focus: Ethiopia prioritizes foreign exchange gains despite climate change concerns.
- Regulatory Challenges: Stricter regulations imposed on miners, requiring government permissions.
- Hydropower Advantage: Grand Ethiopian Renaissance Dam’s hydropower potential attracts miners.
- Geographic Benefits: Altitude and climate conditions position Ethiopia as a potential rival to Texas in bitcoin mining.
Ethiopian Bitcoin Mining Surge
Ethiopia, in a bid to boost its foreign exchange reserves, has entered power supply agreements with 21 bitcoin miners, predominantly of Chinese origin. This move solidifies Ethiopia’s position as a global hub for bitcoin mining, with only two non-Chinese miners in the mix. Despite concerns raised by climate change advocates, Ethiopia’s pursuit of foreign exchange gains takes precedence.
Regulatory Challenges and Hydropower Potential
The government, under Prime Minister Abiy Ahmed, has addressed regulatory concerns by imposing strict requirements on miners. Nemo Semret, CEO of QRB Labs, highlights the challenges faced in introducing this new sector. However, with the recent completion of the Grand Ethiopian Renaissance Dam (GERD) and its hydropower capacity, Ethiopia emerges as an attractive destination for Chinese bitcoin miners.
Ethiopia vs. Texas: A New Rivalry?
The combination of regulatory measures, hydropower advantages, and favorable geographic conditions, including the altitude of Addis Ababa, positions Ethiopia as a potential rival to the U.S. State of Texas in the realm of bitcoin mining.