Bitcoin miners contribute $55 million to Ethiopia's revenue as per BBC's report on energy sales
In a groundbreaking move, Bitcoin mining in Ethiopia is financing rural electrification projects, prioritizing areas with limited or no electricity access. This innovative model raises a question for other countries with abundant energy resources but limited distribution capacity: Can Bitcoin mining become a tool for economic development and critical infrastructure?
Ethiopia, a country that has reversed its surplus electricity resources, is using Bitcoin mining as a catalyst for energy development. Unlike other countries, Ethiopia does not subsidize Bitcoin mining; it is charged for, and the revenues are strategically reinvested in expanding the electrical grid.
Over 57 million Ethiopians, nearly half the population, live without reliable access to electricity. However, Bitcoin mining is helping to change this. Some of the generated resources are being used to modernize substations, expand transmission lines, and train local technical personnel.
The participation of foreign companies has facilitated the transfer of technological knowledge, the training of local talent, and the modernization of electrical networks in Ethiopia. This, coupled with Ethiopia's institutional approach, has made it stand out among countries exploring similar models.
In a world where energy demand grows and pressure to decarbonize intensifies, models like Ethiopia's offer a pragmatic alternative. Bitcoin mining in Ethiopia is becoming an ally of development, as it allows for the sale of excess energy to miners who pay for it, financing the expansion of the grid.
Lack of transmission infrastructure has historically been a major obstacle to economic and social development in Ethiopia. However, Bitcoin mining is helping to overcome this hurdle. Over 90% of Ethiopia's energy comes from renewable sources, reinforcing the sustainability of the model.
Ethiopia's approach suggests that Bitcoin mining can transform energy into development, as long as a clear regulatory framework is established and local reinvestment is prioritized. Other countries, including Paraguay, have explored similar models, but Ethiopia stands out for its scale of impact.
In conclusion, Ethiopia is proving that Bitcoin mining can be more than just a speculative activity. It can become an instrument of public policy, rural development, and technological modernization. As other countries take note, we may see more countries adopting this innovative model in the future.
