Stablecoin issuer Tether has recently made an investment from its reserves to support El Salvador’s $1 billion renewable energy project, with the aim of driving Bitcoin adoption in the country. Tether, known for its USDT stablecoin, is among a select few companies investing in El Salvador’s renewable power generation initiative. Through a company called Volcano Energy, electricity will be generated from solar and wind energy to power future Bitcoin mining operations in the country.
This planned 241-megawatt (MW) renewable energy park is part of El Salvador’s ongoing efforts to embrace Bitcoin since declaring it legal tender in 2021. In an interview with Paolo Ardoino, the chief technology officer of Tether, conducted during Money 20/20 in Amsterdam, he discussed various topics related to Tether, Bitfinex, and the cryptocurrency industry.
Two days prior to the interview, Tether announced its investment in Volcano Energy, aiming to gain exposure to energy production and utilize the facility to power Bitcoin mining farms in the future. Ardoino also emphasized the ideological aspect of the move, expressing his belief that El Salvador is leading the way in sovereign Bitcoin adoption, despite the relatively slow uptake of BTC as a payment option in the country.
Ardoino drew a parallel to the adoption of the euro by the European Union in the early 2000s, noting that such transitions require significant resources to change existing financial infrastructure and garner support from citizens. He acknowledged that the widespread use and adoption of Bitcoin in El Salvador will take time, as citizens are not obligated to use the alternative currency in their daily lives.
Tether’s investment in El Salvador’s energy production program serves a dual purpose. Firstly, investing in energy infrastructure holds inherent value that can be utilized to power Bitcoin mining operations. Secondly, Ardoino disputed prevailing narratives surrounding the environmental impact of Bitcoin mining, stating that a majority of mining already occurs using renewable energy and that excess energy can be harnessed through the establishment of energy production facilities.
Tether’s investment, along with a group of 12 other investors, aims to create an energy production facility that not only supports Bitcoin mining but also benefits companies, factories, and households in El Salvador. The surplus energy generated by Volcano Energy will contribute to making El Salvador a unique pioneer in the world of cryptocurrencies.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up