El Salvador is going to rent out volcanoes for bitcoin mining

Authorities in the geothermal energy-rich Central American country of El Salvador are looking to lease out volcanoes to miners. El Salvador has about 170 volcanoes, the heat of which can help generate cryptocurrency. This idea “makes sense,” said the country’s president, Nayib Bukele, commenting on a post on the X network about the prospects of mining hundreds of bitcoins using volcano energy.

Image source: AI generation Kandinsky 3.1/3DNews

Three years ago, El Salvador became the first country in the world to allow the circulation of Bitcoin along with the national currency. This year, the country’s authorities came up with the idea of ​​​​creating a tax-free zone that would develop by using the heat of a nearby volcano. It is believed that this may be the currently inactive seaport of La Union. It should also become a “Bitcoin City”, where the cryptocurrency will be mined using geothermal energy.

It was previously reported that the Turkish company Yilport Holding is going to invest significant funds in the Bitcoin City project. Along with the port of La Union, funds should also go towards the development of the country’s existing and main seaport, Acajutla. It is planned to raise $1.6 billion. The pilot project allegedly allowed the volcano to produce 474 bitcoins, or about $46 million. Bitcoin is on the rise again and has stirred up interest in mining.

At the moment, El Salvador’s treasury holds 5,944.77 bitcoins, which at current market prices is more than $583 million. To finance the Bitcoin City project, El Salvador issued the Volcano Bond, a “volcanic bond” backed by bitcoin. But for the practice of leasing volcanoes, local legislation must first be changed, which is what the responsible structures in the country are currently doing.