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BRICS starts Bitcoin mining – What does this even mean?

BRICS starts Bitcoin mining - What does this even mean?
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TL;DR

  • Ethiopia joins BRICS and partners with China to launch Bitcoin mining operations powered by affordable hydropower.
  • This initiative marks Ethiopia as the first African BRICS country to delve into Bitcoin mining, attracting 19 Chinese miners.
  • Ethiopia implements strict regulations for Bitcoin mining, requiring government approvals to ensure compliance and oversight.

Gone are the days when the BRICS coalition was just a fancy acronym for an emerging economic alliance. Ethiopia, the latest jewel in the BRICS crown, has boldly stepped into the Bitcoin mining arena, sealing the deal with China, a move that has everyone’s eyebrows dancing. This is a full-on leap into the digital currency cosmos, with hydropower at its heart.

A Leap Into Digital Wealth

Ethiopia’s embrace of Bitcoin mining is a calculated dive into the deep end, powered by the country’s abundant hydropower resources. The Ethiopian State Electricity Company has thrown open its doors, offering up affordable hydropower to lure in foreign investors, and China—with its keen eye for opportunity—has eagerly stepped through. Nineteen Chinese Bitcoin miners have now secured their slice of the Ethiopian power pie, a testament to the allure of Ethiopia’s energy offerings.

However, this deal is no simple handshake. Ethiopia has woven a tapestry of regulations around Bitcoin mining, ensuring that every thread of the process is government-approved. Nemo Semret, the CEO of QRB Labs, paints a picture of a rigorous two-year quest for these essential permissions, highlighting the nation’s cautious yet determined approach to welcoming this new economic venture.

As Ethiopia carves out its niche in the Bitcoin mining world, the rest of the BRICS brigade watches with keen interest. China’s leap into Ethiopian hydropower might just be the starting gun for a wider BRICS foray into the sector. This is a potential game-changer for the global Bitcoin mining landscape, challenging even the dominance of Texas, the current heavyweight champion of the Bitcoin mining world.

Shifting Sands of Global Trade

But wait, there’s more! The BRICS bloc is reshaping the very foundations of international trade, moving away from the US dollar with a swiftness that has the currency markets doing double-takes. Russia, China, and India have dramatically shifted towards using their local currencies for trade, leaving the US dollar in the dust in a staggering 95% of their transactions.

This seismic shift in currency usage underscores a broader strategy of de-dollarization, driven by a desire to insulate the BRICS nations from external economic pressures, including Western sanctions. The ripple effects of this move are profound, with the Russian ruble and other friendly nation currencies seeing a significant uptick in cross-border transactions. This is a full-on storm, reshaping how global trade winds blow.

China’s burgeoning trade relationship with Russia, accounting for a whopping 29% of its trade turnover, is a case in point. The move towards settling nearly 70% of their trade in local currencies is a bold statement of economic independence and resilience.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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