- Belarus is exploring using surplus electricity from its nuclear power plant to mine cryptocurrencies.
- President Lukashenko cites global trends, including the U.S. interest in crypto, as motivation for the initiative.
Belarus may soon join the list of nations utilizing excess energy for cryptocurrency mining operations. President Aleksandr Lukashenko has instructed government officials to investigate the feasibility of establishing state-sponsored mining facilities. This points to the potential economic benefits such activities could bring to the national economy.
This directive comes as the country finds itself with huge energy reserves following the full activation of the Astravets Nuclear Power Plant. Since 2023, the facility has generated electricity beyond domestic consumption, creating an untapped resource that the government is now looking to monetize.
The move reflects a growing trend among countries with energy surpluses or energy banks to explore cryptocurrency mining as an economic activity. Rather than allowing excess electricity to go unused, these nations are viewing digital currency production as an innovative way to convert surplus energy into financial assets.
Notably, for Belarus, this initiative could represent a new way to generate revenue at a time when many countries are reassessing their economic strategies in the digital age.
A Strategic Move Inspired by Global Trends
President Lukashenko’s interest in cryptocurrency mining comes amid a global shift toward digital assets. He referenced the U.S. government’s exploration of a national crypto reserve, which could include major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
This, he suggested, highlights the growing importance of cryptocurrencies and the demand they could generate.
Belarus is not the first country to consider this approach. The Kingdom of Bhutan, for example, uses its plentiful hydropower resources to mine Bitcoin, with plans to expand its operations.
Similarly, El Salvador has tapped into geothermal energy for Bitcoin mining. Belarus’s strategy, however, relies on nuclear energy, which could introduce unique challenges and opportunities.
The Astravets Nuclear Power Plant, built with a massive $10 billion loan from Russia, has been generating more power than Belarus needs. Last year alone, the plant produced 41.8 billion kilowatt-hours of electricity, with about 700 million kilowatt-hours left unused after meeting the country’s needs.
President Lukashenko sees two main options for this extra electricity: the government could set up its digital money-making operations, or it could sell the power to private companies that want to run mining computers in Belarus.
However, several challenges stand in the way of these plans. First, Belarus doesn’t have clear rules about digital currency. Without proper regulations, both government and private mining operations might face legal unsureness.
Secondly, the country’s close relationship with Russia might cause problems. Since Russia provided the money for the nuclear plant, some countries, especially those already concerned about Russian influence, might view Belarus’s mining activities with suspicion.
Third, Belarus faces sanctions from Western countries. These restrictions might make it difficult to sell any digital coins created in Belarus on international markets, as some exchanges and buyers might avoid them.
These complications mean that while Belarus has the power resources needed for mining, turning that electricity into profitable digital assets might not be as straightforward as the government hopes.