Belarus allows nuclear power mining to set up factories in the country

Original title: Nuclear power mining Belarus’s digital currency dream

"Belarus will soon have excess nuclear power that can be used to power new cryptocurrency mining farms." In a recent meeting with IT industry representatives, Belarusian President Alexander Lukashenko reiterated the government's willingness to protect and promote the development of the country's digital currency industry. He said that he would develop digital currency mining with the whole country's strength and allow cryptocurrency mining factories to be set up in the country.

As if to live up to its loyal fans like Belarus, Bitcoin has been bullish recently.

Data shows that even after a large-scale systematic attack by hackers in the early trading of May 8, which resulted in the loss of 7,000 bitcoins (worth 300 million yuan), the momentum is still strong. After 7 months, the price of bitcoin has returned to the threshold of $7,000. On May 12, it continued to rise, reaching the annual high of $7,448, and then fell slightly. As of 12:00 noon on May 13, the price of bitcoin was about $7,028.70.

As a well-known "iron fan" of digital currency, Lukashenko has publicly "declared his love" more than once. He has repeatedly pointed out that Belarus has all the resources needed to develop artificial intelligence, big data and blockchain technology, and needs to learn how to benefit from the development of information and communication technology. He even warned entrepreneurs not to forget the country and its interests, "Let us work together for this land, and I will guarantee your stability and freedom from interference."

Belarus and Lukashenko have created favorable conditions for foreign investment and technological development, and their efforts have not been in vain. At present, Belarus has attracted the interest of many cryptocurrency companies. The Minsk government announced that the number of registered cryptocurrency companies in the High-Tech Park has increased by 1/4 by 2018.

Digital currency complex

Since the digital currency craze swept the world, Belarus has been friendly to this rapidly developing new thing. Currently, the country is one of the top ten countries in the world that are most friendly to blockchain and other digital currency startups.

As early as December 2017, with the approval of Lukashenko, the Belarusian government enacted a number of regulations affecting the blockchain and crypto industries, officially recognizing Bitcoin as a legal currency and legalizing ICOs, smart contracts and blockchain development.

"The main goal of the document is to create conditions for global IT companies to come to Belarus, open their representative offices, R&D centers, and develop popular products," Lukashenko wrote in a document titled "On the Development of the Digital Economy."

On March 28, 2018, the "Regulations on the Development of the Digital Economy" officially came into effect, introducing tax breaks and other incentives for crypto companies.

Unlike several major Bitcoin markets such as South Korea, the Belarusian government will not impose taxes on mining, digital currency trading and token sales until 2023. Not only that, but overseas digital currency companies will not have to pay taxes for the next five years. As long as they register as members of the Belarusian High-Tech Park (HTP), individuals and corporate entities from the digital currency field can freely do business anywhere in Belarus.

“Belarus passed the decree and hopes to become a hotbed for global IT business. In addition, Belarus is creating favorable conditions for blockchain technology and its upper-layer businesses,” said Vsevolod Yanchevsky, director of the Belarusian High-Tech Park.

Such active development of the digital currency industry is considered to be a radical move by Belarus to stimulate the economy.

As we all know, the financial crisis in 2008 ended Belarus's years of rapid economic growth, and the country's economy has been in a long-term downturn since then. Since the Ukrainian crisis in 2014, the Belarusian economy has hit rock bottom due to the plunge in international oil prices and the impact of the Russian economic crisis.

In 2017, Belarus' economy began to recover, but due to factors such as backward economic structure, insufficient investment, and excessive debt, its economy is still in a stage of slow growth. To this end, the Belarusian government has formulated a series of plans and tasks for future economic development in order to push the economy out of the low-growth track. The development of digital currency and related industries is the latest development path they have chosen.

Mining with nuclear power

At present, the mainstream Bitcoin mining farms in the world mostly use hydroelectric power and wind power, and some use traditional thermal power (coal power). It is very common for a mining farm to rent a small hydropower station to directly supply the Bitcoin mining farm next to it.

Lukashenko said that the country's excess nuclear power will be used to power new cryptocurrency mining farms. If successful, Belarus will become the first country in the world to use nuclear power plant electricity for mining.

The nuclear power plant Lukashenko was referring to is located in the Grodno region, close to the Lithuanian border. The plant has two nuclear reactors. The first unit is scheduled to be put into operation by the end of the year, and the second unit is expected to start generating electricity in the summer of 2020. The total capacity of the new nuclear power plant will be around 2,400 megawatts (MW).

"We have taken this course with you. If you need anything, just tell me and we will solve all problems." Lukashenko assured Belarusian young IT experts, whom he called "my children," that the country will continue to support the digital economy and stressed that "this is my responsibility and I will help you as much as possible." He also promised that Belarus has sufficient resources to protect and develop this emerging industry.

Since the birth of Bitcoin, it has been criticized for consuming electricity to mint Bitcoin, being wasteful and not environmentally friendly. The scientific journal Energy published an economic analysis paper on nuclear fusion in Volume 152 published on June 1, 2018, and provided a comparison chart of power generation from multiple energy sources. The results showed that nuclear fusion technology has the lowest cost of power generation and is very environmentally friendly, but it is still far from practical use.

If the nuclear reactor in Belarus is put into operation as scheduled, it will indeed provide cheaper, cleaner and more sustainable electricity supply for Bitcoin mining. Belarus has devoted its national strength to the development of digital currency and will use nuclear power for mining. Will the spring of digital currency, led by Bitcoin, be far away? The answer may soon surface.

Editor-in-charge: Tang Jing