Spanish lawmaker sees opportunity amidst Bitcoin mining collapse in Kazakhstan

Spanish lawmaker sees opportunity amidst Bitcoin mining collapse in Kazakhstan

The deputy of the Spanish political party Ciudadanos, María Muñoz, proposed a bill to turn Spain into a Bitcoin mining access point after the internet shutdown that caused an interruption in mining in Kazakhstan.

The lawyer and economist Muñoz remained firm in her support for Spain as a destination for Bitcoin (BTC), in a Tweet on Friday:

“The protests in Kazakhstan have repercussions all over the world but also for Bitcoin. We propose that Spain position itself as a safe destination for investments in cryptocurrencies to develop a flexible, efficient and safe sector ”.

A two-page open letter accompanied the tweet addressed to the Spanish Congress of Deputies. First, Muñoz highlighted the importance of the protests and the government’s response, which used “the entire force of the police and the army”, before the government disconnected the Internet to switch to the largest economy in Central Asia.

He cited a study by the Cambridge Center for Alternative Finance that ranked Kazakhstan as the world’s second-largest Bitcoin miner, contributing an estimated 20% of the hash rate in the second half of 2021. The government’s decision to pull out effectively Kazakhstan’s Bitcoin carpet miners caused the hash rate to plummet 13.4%.

These events inspired pertinent questions for the pro Bitcoin legislator:

  1. What information does the Spanish government have on the impact of Kazakhstan’s internet blackout on the Spanish crypto mining industry?
  2. Will the government take steps to attract investors and miners fleeing the Kazakhstan mining industry?
  3. What data does the government have on the energy efficiency of Bitcoin and the growth of the mining industry?
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A proven proponent of the Bitcoin network, her Ciudadanos party, proposed a national strategy on cryptocurrencies in October last year. His party seeks to position Spain as a hub for European Union and world cryptocurrency investments, and Bitcoin mining could be the catalyst.

As Bitcoin hash rate fluctuations have shown time and again, the mining infrastructure is not geographically restricted. China’s mining ban, for example, benefits Kazakhstan and Kosovo.

Alan Konevsky, Chief Legal Officer at PrimeBlock, explained last year’s mining changes to Cointelegraph: “Mining companies, including those that moved after China’s regulatory changes, have established themselves in countries like Kazakhstan and Kosovo because the cost of electricity is much cheaper than in North America.”

This was demonstrated in the rising hash rate of Kazakhstan in 2021. However, in a premonition of what could happen in Spain, Konevsky goes on to explain:

“If mining becomes a total failure in these countries, we could see the miners relocate. This industry is mobile, to some extent, but as it matures, it requires stability, including a stable political climate and stable inputs, including energy. “

Muñoz expects Spain to harbor these favorable factors for Bitcoin. However, one of the biggest headwinds for BTC may be the political one. His tweet inspired the ridicule of rival Green party member Ernest Urtasun, a member of the European Parliament.

By labeling your proposal as a “bad joke” in a Tweet, said BTC mining is “an environmental aberration.” Muñoz and his Ciudadanos party clearly have a lot of work to do.

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