The Bitcoin mining industry is growing fast. Along with this, the concerns about its environmental impact are growing along. The original and most popular crypto, Bitcoin, is energy-intensive by design, “mined” by millions of high-powered computers around the world.
That puts enthusiasts in a hard position. They say crypto tokens will power a decentralized internet. This will change the economics of banking, finance, gaming, shopping, entertainment, and even human interaction.
Brazil Congress on Bitcoin mining
Brazil’s congress attended multiple proposals approving a tax exemption. This was for exemption on miners and encouraging cryptocurrency to the status of a national currency.
A new proposal in the Brazilian Congress calls for a tax exemption. This exemption is on both – the importation of crypto mining rigs and on any mining that uses renewable energy sources.
A Saturday report from Brazilian media outlet Seudinheiro explains that a series of new recommendations from Brazilian legislators could lower the objection crypto gets in South America’s largest country.
Congress also attended a suggestion for cryptocurrency to be considered as a currency as opposed to a commodity. If this proposal passes, crypto exchanges will be able to deliver financial services and issue loans to Brazilian locals.
Senator Irajá Silvestre Filho made all three propositions to congress. It is presently indefinite how much aid the proposals have in the congress, but there is huge support from the Brazilian crypto society.
Ray Nasser, CEO of Arthur Mining, said that if Brazil passes the tax exemption on crypto miners, it could evolve to be a global “Mecca of mining.”
Under the situation that cryptocurrency becomes a legal currency, the Central Bank of Brazil would be permitted to issue a digital real central bank digital currency (CBDC). This would place Brazil among nine other countries or jurisdictions that currently issue CBDCs to their citizens.
Bitcoin mining in Brazil
According to the International Trade Administration, currently, Brazil produces under half of its electricity from renewable sources. The cost per kilowatt-hour is about $0.12, putting it approximately in the middle of the global pack in that regard.
Taynaah Reis, CEO of Moeda, a Brazil-based blockchain finance company, told:
“Crypto is rising rapidly in Brazil and the regulatory bodies have been very proactive and protective on incentivizing mining and drafting policies on best practices as major businesses announced their plans on including crypto.”
Reis also told that miners would have to register their equipment. This registration will be with the Brazilian government as a means of monitoring the ecosystem.
Power Supply VS Crypto mining
There are current power supply concerns in Brazil, where power rationing is becoming a reality. Power rationing is where small pieces of a country are provided with smaller portions of power to protect the general power grid.
Rudá Pellini, president of Arthur Mining, said that while Brazil deals with power rationing, he does not see the new addition of Bitcoin miners as a threat to the power supply:
“One of the main problems in the energy issue in Brazil is the transmission. We have a large energy generation surplus in the country, and it is possible to promote greater investments in clean energy generation.”