Switzerland’s Canton of Bern approves proposal to explore Bitcoin mining as solution to energy waste

Key Takeaways

• The Canton of Bern parliament approved a proposal to explore Bitcoin mining as a solution for excess energy utilization and power grid stabilization.
• The feasibility study will examine energy availability, environmental impact, and regulatory considerations of Bitcoin mining.

Switzerland’s Canton of Bern parliament has approved a proposal to explore Bitcoin mining as a solution to excess energy utilization and power grid stabilization.

Samuel Kullmann, a member of the Grand Council, said the motion was adopted on November 28 with a decisive vote of 85 to 46, backed by multiple politicians in Bern.

“Even though the debate was heavily influenced by classic FUD arguments and missed the point, the proposal ultimately found a clear majority,” said Kullmann, adding that some traditionally conservative parties supported the initiative. “The outcome clearly demonstrates that the narrative on Bitcoin is changing.”

The proposal suggests that establishing a favorable environment for Bitcoin companies could give Bern a competitive edge over other regions seeking to become crypto innovation hubs.

“Bitcoin mining companies bring investments, create jobs and help many parts of the world develop renewable energy sources. For several years now, Bitcoin mining has been one of the greenest industries in the world,” according to the proposal.

“Bitcoin miners are not the only option for demand-side flexibility, but they have the advantage of bringing a direct economic benefit,” it stated.

The Cantonal Government initially requested a rejection of the motion, as reported by Blocktrainer, an educational platform for Bitcoin in the German-speaking regions.

The council raised concerns about increased energy consumption and power grid instability. They were also worried about the environmental impact of Bitcoin mining and the regulatory risks associated with crypto assets.

“Bitcoin and other cryptocurrencies are not legal tender,” the council stated. “Bitcoin and other crypto assets are beyond monetary policy and thus the safeguarding of price stability by the national bank, as well as state supervision, which is associated with various other risks.”

Despite the opposition, the parliamentary group successfully secured approval from the Grand Council. The government council will now conduct a feasibility study on Bitcoin mining in the canton, examining factors including energy availability, environmental impact, and regulatory considerations.

Depending on the findings and recommendations from the report, there may be further steps to develop policies or regulations that facilitate responsible Bitcoin mining practices.