The post Ethiopia’s Power Deals with Chinese Firms Fuel Bitcoin Mining Boom appeared on BitcoinEthereumNews.com.

Ethiopia, Africa’s second-largest country, is witnessing a Bitcoin (BTC) mining boom fueled by power agreements with Chinese firms. Colin Wu, a prominent Chinese cryptocurrency journalist, reported that Ethiopia, with a population of 115 million, now has more than 1.8 million cryptocurrency users. The Ethiopian Energy Authority has entered into power agreements with 21 Bitcoin mining companies, 19 of which are from China. Local mobile money platforms have already enabled users to buy and sell cryptocurrencies and stablecoins through Binance and Paxful. The Evolution of Ethiopia’s Stance on Crypto In June 2022, Ethiopia’s central bank, the National Bank of Ethiopia (NBE), declared cryptocurrency trading illegal. The NBE cited concerns about financial instability, money laundering, and the lack of regulation surrounding crypto assets. This move reflected the anxieties of many African central banks worried about cryptocurrencies undermining national currencies and centralized financial control. However, in August 2022, the Ethiopian government signaled a shift in policy. The Information Network Security Agency (INSA) issued a directive requiring all cryptocurrency operators to register with them, warning that unregistered crypto players would be prosecuted. This marked a transition from an outright ban to a more regulated approach, aiming to harness the benefits of cryptocurrencies while mitigating potential risks. Crypto Adoption and Regulatory Framework Despite the NBE’s initial ban, crypto adoption has continued to grow in Ethiopia. The government recognizes the potential benefits of cryptocurrencies, such as facilitating cross-border payments and enhancing digital identity systems. INSA and other entities are formulating guidelines to supervise the economic and environmental implications of the crypto sector. Interest in foundational technologies like blockchain is also growing, with developers, entrepreneurs, and government officials exploring its applications beyond finance. One of the most notable blockchain initiatives in Ethiopia is the digital student identity program implemented by Input Output Global (IOG) under the Cardano…

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Filed under: News - @ June 17, 2024 12:16 pm