Switzerland has officially passed legislation to consider Bitcoin mining, signaling growing acceptance among traditional financial institutions and governments around the world.
The effort, reported by Satoshi Action Fund CEO Dennis Porter, has been accelerated by recent political changes, including the election of Donald Trump, which has reignited interest in Bitcoin as a viable financial asset. This reflects a broader trend in
Bitcoin mining potential amid legislative push
The law requires the Council of State to prepare a comprehensive report analyzing the potential benefits and challenges associated with Bitcoin mining in the canton of Bern.
According to court documents, the purpose of the report is to identify areas where untapped energy can be used for mining operations and to work with local Bitcoin mining companies to assess how this energy can be effectively utilized. and to evaluate whether Bitcoin mining can contribute to stabilizing the regional power grid. .
The initiative comes from the bipartisan Bitcoin Parliamentary Group, which seeks to position Bern as an “advanced hub” for what lawmakers call the digitalization of finance.
The Swiss parliament also claims that regions around the world with surplus electricity are beginning to realize the economic potential of BTC mining. These businesses are considered flexible consumers of surplus electricity, especially when energy production exceeds local demand.
In Switzerland, lawmakers argue that BTC miners could provide a solution to areas with negative electricity prices, providing an economic incentive to use wasted energy.
The potential for Bitcoin mining to stabilize power grids is highlighted by examples such as in Texas, where miners have successfully partnered with power grid operators to strengthen energy resiliency. However, the State Council expressed concern about the impact of increased Bitcoin mining activity in the canton of Bern.
Warning against state intervention
The council claims that there are currently no statistics on electricity consumption for Bitcoin mining in Switzerland, but it is recognized that much of this activity is carried out abroad using cloud technology.
A report from the Foundation for Technology Assessment (TA Swiss) shows that data center demand, driven by trends such as big data and the Internet of Things, is far outstripping the impact of cryptocurrency mining on overall power consumption. It is emphasized.
The council warned that the expansion of Bitcoin mining could lead to fluctuations in energy prices and “jeopardize” the electrification of other sectors such as transport and heating.
There are concerns that Bitcoin mining could intensify competition for limited energy resources as electricity demand increases due to digitalization and electrification.
Officials also stress that energy supply and demand should be determined by markets, suggesting that potential profits from mining should emerge organically rather than through state intervention.
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At the time of writing, the largest cryptocurrency is once again nearing the $100,000 milestone, currently trading at $96,760, up 10% over the past 14 days.
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