Report: Belarus Considers Cryptocurrency Mining to Make Use of Nuclear Power Surplus
Belarus is considering mining cryptocurrencies using its surplus nuclear power, according to a report from the Belarusian Telegraph Agency (BelTA). It is a pioneering economic strategy, similar to that adopted by countries like Bhutan.
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Excess Electricity Could Boost Belarus' Crypto Economy
President Alexander Lukashenko has instructed officials to study cryptocurrency mining as a way to make efficient use of the country's surplus electricity, which is mainly produced by the Astravets Nuclear Power Plant. The plant is set to go online in 2023 and, in 2024 alone, generate 41.8 billion kWh of electricity, exceeding Belarus' domestic demand by about 700 million kWh.
Lukashenko's statement - "We have surplus electricity. Let them make cryptocurrency" - was quoted by BelTA, referring to a new strategy to profit from unused energy. Options include state-controlled cryptocurrency mining or selling electricity to private companies. Belarus's approach mirrors El Salvador's geothermal bitcoin mining model and Bhutan's use of hydropower in cryptocurrency mining.
New strategy has potential but could face challenges
However, Belarus's dependence on nuclear power brings its own peculiarities. Funded through a $10 billion loan from Russia, the plan could have complicated geopolitical implications, especially when used as a financial instrument. While President Lukashenko has emphasized the potential for profit, factors such as the legal framework and specific goals in the cryptocurrency sector have not been clarified. However, Belarus’ electricity costs are among the lowest in Europe, which could attract miners despite regulatory uncertainty.
The association with Russia amid Western sanctions also raises questions about the viability of the plan in the global market. The proposal represents a growing trend of countries using their energy surpluses to mine cryptocurrencies, despite the challenges. With Bhutan’s success, the experiment could provide a new direction for Belarus.
Lukashenko has also said that he sees major changes globally, citing former US President Donald Trump’s recent unveiling of plans to create a strategic cryptocurrency reserve as evidence of the growing crypto trend. This also aligns with Lukashenko’s comments in late January when he said Belarus was considering developing a sovereign digital currency. Earlier, in May 2024, he stressed that many countries are questioning the continued use of the US dollar.