According to a recent press release by Ukraine’s state nuclear energy firm Energoatom, they might soon start mining crypto. According to the press release, the state is considering using surplus power from its nuclear power that has been caused by the reduced demand for power due to coronavirus.
A Way to Make Money off Surplus Power
The press release explains that this step is being considered as a way to deal with the serious economic challenges the state’s energy sector is facing. As a result, they have to consider new approaches, which will help to secure the future of Ukraine.
The press release also notes that this is in line with their president’s defined course for the digitization of Ukraine. It quotes President Zelensky as having said that he wanted quick changes and he believed in the nation’s ability to make Ukraine a leader in the digital space. As a result, the nation had to work together to come up with initiatives that eliminated barriers to e-government and the digital economy. In line with this goal, Ukraine has already passed a bill to govern the nation’s crypto trading sector.
Transforming Liabilities into Assets
The press release notes that in the past, saving the energy sector from economic ruin to COVID-19 would have involved spending funds to save what is already available. However, it notes that this would create avenues for corruption where Ukrainians would be forced to pay for it through taxation.
It notes that another alternative is to transform liabilities into assets. To do this, they can use the surplus power from nuclear plants to mine cryptocurrencies. Besides allowing nuclear plants to earn an extra income, it will also help them maintain the guaranteed load. In the statement, the state energy firm notes that it will create a new market approach to existing issues.
Besides mining crypto, the statement says that the Ministry of Energy and Environmental Protection could soon create data processing centers close to nuclear plants. It states that Energoatom is currently working on a pilot project to connect data centers with up to 1GW from the power grid. The pilot project will start with an allocation of 30MW, which will be located in the city of Zaporizhzhya NPP Energodar. It adds that the project will be used in helping to create the infrastructure needed for the delivery of power to meet the long –term electricity demand of data centers. In the future, such data centers could be self-sustaining they could be used to solve the tasks as set forth by President Zelensky.
The decision to use crypto mining as a way to deal with surplus electricity generated by the nation’s nuclear plants is a great one. There is already a power plant in New York that is using surplus power to mine crypto. However, it might not be a viable solution in the long term. The reason for this is that crypto mining is generally unpredictable when it comes to profits. If the proposal goes ahead, it would be the first time a government has implemented crypto mining on a national level.
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