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Journalist
Hassan Shittu
Journalist
Hassan Shittu
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In a groundbreaking decision, the Grand Council of Switzerland’s Canton of Bern has approved a motion to evaluate the potential of Bitcoin mining to stabilize the local energy grid and utilize surplus energy.
This legislative move was spearheaded by Swiss lawmaker Samuel Kullmann and supported by a cross-party group, “Parliamentary Group Bitcoin.”
The motion passed with an 85–46 majority despite resistance from the canton’s government council, which had previously dismissed the proposal, citing energy concerns and international implications.
The initiative, widely celebrated by Bitcoin advocates, aims to explore how the proof-of-work blockchain mechanism could mitigate energy wastage and support renewable energy systems.
The study will analyze the compatibility of Bitcoin mining with Bern’s energy policies and its potential role in job creation, grid stability, and environmental sustainability.
Switzerland Lawmakers Approved Bitcoin Mining Motion: Could This Study Come Out Well?
The motion, introduced in March 2024 by the Parliamentary Group Bitcoin—a coalition of 23 lawmakers from various political parties—called for a comprehensive study to identify opportunities for Bitcoin mining within the canton.
The lawmakers drew inspiration from global examples, particularly the state of Texas in the U.S., where Bitcoin mining has been effectively integrated into energy policies.
Texas has demonstrated how mining operations can act as flexible electricity consumers, absorbing excess power during periods of overproduction and reducing consumption during shortages.
The motion emphasized that Bitcoin mining, often misunderstood as an energy-intensive activity, has evolved into one of the most sustainable and adaptable industries.
Bitcoin miners’ flexibility allows them to act as stabilizing agents in electricity markets.
This particular trait aligns with Switzerland’s goals of expanding renewable energy sources and improving grid reliability.
Government Opposition and Key Debates
The Canton of Bern’s government council initially opposed the motion, arguing that Bitcoin mining’s energy consumption is primarily an international issue and does not significantly impact local energy production.
The council also cited concerns over competing demands for electricity from data centers, electric vehicles, and other sectors, which could strain Switzerland’s energy grid.
Additionally, the government council questioned the financial and regulatory implications of promoting Bitcoin mining.
They pointed out that Bitcoin is not legal tender and operates outside central banks’ control, raising issues related to price stability, money supply management, and potential criminal activity.
The council suggested that energy storage technologies, rather than Bitcoin mining, would be a more effective solution for managing overproduction and grid stability.
Despite these objections, the Grand Council’s overwhelming support for the motion reflects a shifting narrative around Bitcoin’s role in energy policy.
Lawmakers argued that ignoring Bitcoin’s potential could mean missing out on opportunities to attract investments, create jobs, and enhance energy efficiency.
Kullmann argued otherwise, that the study is not a commitment to adopting Bitcoin mining but a necessary step in evaluating its feasibility and benefits.
If the study yields positive results, Bitcoin mining could become an integral part of Bern’s energy strategy, contributing to the canton’s goals of reducing energy wastage and stabilizing its electricity grid.
The initiative also has the potential to attract Bitcoin mining companies to Switzerland, boosting the local economy and fostering innovation in renewable energy integration.
This development aligns with broader trends in global Bitcoin adoption.
Countries like the United States and Brazil have proposed creating strategic Bitcoin reserves, while jurisdictions like Texas have demonstrated the practical benefits of integrating Bitcoin mining into energy policies.
