Bitmain, one of the gigantic mining enterprises all over the world, is searching new mining sites in Canada. Quebec could be the province that would host the most miners. The mining company is already negotiating with the Canadian authorities. Some time ago, Bitmain announced that it was expanding to Switzerland to the so called “Crypto Valley”.
Bitmain Could Move to Canada
According to Reuters, due to expectations of a potential Chinese crackdown on cryptocurrency mining, the company is eyeing bitcoin mining sites in Quebec’s province. Canada is an energy-rich country that could be used as an alternative to China.
China keeps being one of the countries with the biggest sources of cryptocurrency mining. But the Chinese government is increasing the pressure to this sector in order to reduce the electricity consumption. Some cryptocurrency mining farms are located near hydroelectric power plants. That means that they use cheaper electricity, increasing their profits.
But this electricity should be used for other industries that are important for Chinese geopolitics. In addition to it, some towns are receiving less electricity or more expensive bills due to these Bitcoin mining farms.
At CoinStaker we have reported that Quebec is attracting Chinese miners that are not sure about their situation in China. The Asian government may decide to impose restrictions to electricity consumption for Bitcoin miners. Bitmain has found in Canada a place with relatively cheap electricity prices, cold weather and political stability. Something similar to what it is planning to do in Switzerland and its expansion in the European country.
In Canada, Hydro Quebec has received different requests to use the hydroelectric power that they produce. David Vincent, business development director of Hydro Quebec, commented:
“I have so much demand right now that there is no need for marketing. Pretty much every day I have a new sell. We have the capacity, but we are not used to having so much big demand like this. It is a good problem to have.”
China has decided to ban Initial Coin Offerings the last September. The Chinese authorities are worried about cryptocurrencies that are not regulated by any central bank. Besides that, their volatility and anonymity, increases the attention that regulators pay to them.
Canada is also analysing the possibility of issuing digital currencies. In a paper, the Canadian Central Bank discusses the possibility to issue a cryptocurrency.
“The emergence of digital currencies such as Bitcoin and the underlying blockchain and distributed ledger technology have attracted significant attention,” reads the statement. “This paper addresses the question of whether a central bank should issue digital currency that could be used by the general public.”