Tether Plans Bitcoin Mining in Uruguay
Tether is launching Bitcoin mining in Uruguay.
Tether, the company behind the largest stablecoin by market cap, said the move “showcases” its commitment to energy innovation and the future of crypto, in an announcement on Tuesday.
“By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining,” said Paolo Ardoino, Tether’s chief technology officer. “Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network.
Tether said too it would be collaborating with a “local licensed company,” but didn’t disclose the name.
This comes after Tether said it plans to invest 15 percent of its net profits into bitcoin to strengthen its reserves.
Tether said it expects the move to “strengthen and diversify” its reserves of its $1 pegged stablecoin, in a statement released on May 17.
Crypto mining draws some scrutiny in the US
US Sen. Edward J. Markey, D-Mass., reintroduced a bill in March called the Crypto-Asset Environmental Transparency Act, which would require cryptomining companies to disclose their emissions “for operations that consume more than five megawatts of power.”
“The crypto industry is growing, and so is a plume of pollution around their mining facilities,” Markey said.
Others say bitcoin mining can be beneficial to local communities, especially rural areas in the US.
Courtney Dentlinger, vice president of customer service and external affairs and chief customer officer for the Nebraska Public Power District, told lawmakers at a hearing in March that crypto mining can have economic benefits.
“For instance, an economic impact study performed for a crypto-mining project in Nebraska showed over a $65 million economic 3 impact on Nebraska’s economy; 193 jobs generated and supported; and $5.5 million in state and local taxes and transfer payments generated,” Dentlinger said.
“In rural areas, these economic benefits can be significant,” Dentlinger added.
As of Tuesday morning, bitcoin’s price rose a bit to almost $28,000 up from $26,000 last week, according to CoinMarketCap.