Swiss Canton of Bern Passes Bill to Explore Bitcoin Mining as Solution to Energy Waste

Highlights:

• Swiss Canton Bern passes legislation to explore Bitcoin mining for energy and grid stabilization.
• Despite the opposition of the Government Council, the motion secured strong support, passing 85 to 46.
• The proposal highlights Bitcoin’s fixed supply cap, making it an appealing store of value alternative.

The parliament of the Swiss canton of Bern has passed legislation to explore Bitcoin (BTC) mining as a solution to excess energy utilization and power grid stabilization. Member of Parliament Samuel Kullman confirmed the motion’s approval on November 28. It passed with strong support, 85 to 46, backed by various Bernese politicians. 

Advertisement

With a clear verdict of 85 to 46 votes the parliament of @kanton_bern demands a report on the potential of #Bitcoin mining to stabilize our #energygrid and the use of otherwise wasted #energy.
The proposal was co-sponsored by @simonryser (Green Liberal Party), @KorabRashiti1… pic.twitter.com/WnTNzNdPi4

— Samuel Kullmann (@samuelkullmann) November 28, 2024

In March, the 23-member multiparty Bitcoin Parliamentary Group proposed the report. Although the Government Council opposed it in September, the motion gained strong support. The local publication Bitcoin Trainer reported that the group considered Texas as a model for integrating Bitcoin mining into energy policy. They argued that encouraging Bitcoin mining could attract companies, create jobs, promote renewable energy, and stabilize the grid in the canton.

The Government Council argued that energy use in Bern Canton is a global issue, as the region exports energy. They noted the rising energy demands of other data centers and advancements in energy storage technology. Additionally, they highlighted that Bitcoin mining depends on market trends, and since Bitcoin is not legal tender, it falls outside the Swiss National Bank’s jurisdiction.

 The council stated:

“Bitcoin and other cryptocurrencies are not legal tender. Bitcoin and other crypto assets are beyond monetary policy and thus the safeguarding of price stability by the national bank, as well as state supervision, which is associated with various other risks.” 

Swiss Canton Bern Advances Bitcoin Mining Legislation

 Despite these hurdles, the parliamentary group got approval from the Grand Council. The government will now study Bitcoin mining’s impact on energy, the environment, and regulations. The study will examine factors such as environmental impact, energy availability and regulatory considerations. Moreover, the proposal emphasized that Bitcoin’s appeal lies in its fixed supply cap of 21 million coins, making it a unique and limited asset.

The legislation said:

“The guaranteed scarcity makes Bitcoin an interesting alternative for people seeking a store of value beyond traditional currency systems.” 

Dennis Porter, co-founder of the Satoshi Action Fund, helped draft the proposal and similar legislation in Pennsylvania, USA. Ripple CEO Brad Garlinghouse praised Switzerland’s supportive crypto environment, highlighting Lugano and Zug as blockchain hubs. Switzerland is a well-known crypto hub with high adoption rates. Unlike Germany, which sold around 50,000 BTC earlier this year, the push to lead in Bitcoin mining signals a positive regulatory shift in the industry.

Bitcoin Miners Invest $3.6 Billion in Infrastructure

According to TheMinerMag, major crypto and Bitcoin mining platforms released their financial reports on November 28. Publicly traded firms have raised $5 billion this year through equity and debt financing.

Debt financing contributed 12.5% of the total, about $625 million. Equity financing dominated with $4.4 billion, including $813 million raised in the latest quarter. The companies reported spending $3.6 billion on property, plant, and equipment (PP&E). This increase in infrastructure investment followed a surge in Bitcoin mining hashrate globally.

Advertisement