Samuel Kullmann, a member of parliament in the Swiss canton of Bern, has pushed for the passage of a law that studies Bitcoin mining as a potential solution to the region's electricity surplus.

Lawmakers have tasked the Governing Council with drafting a detailed report on how Bitcoin mining can utilize excess energy and contribute to grid stability.

Potential Assessment

Kullmann expressed his delight at the bill’s 85-48 vote, and thanked Dennis Porter and Julian Liniger for their valuable educational contributions. Porter is the CEO and founder of the Satoshi Action Fund, while Liniger is the CEO of the Bitcoin storage app Relai.

The proposal, led by the bipartisan “Bitcoin Parliamentary Group,” reflects growing interest in positioning Switzerland, and in particular the canton of Bern, as an advanced hub in the burgeoning global financial sector.

Proponents argue that Bitcoin mining can provide clear economic and technological benefits, while also making the most of renewable energy. The report is expected to identify areas in Bern where electricity production exceeds demand, and explore the possibility of partnering with Swiss Bitcoin mining companies to make use of the surplus electricity.

Additionally, proponents have called for an analysis of the potential for Bitcoin mining to support grid stability, especially during periods of unstable energy supply.

Bitcoin mining relies on the energy-intensive Proof of Work consensus algorithm, which ensures the scarcity and decentralization of the asset.

The bill also cites global models, such as in Texas, that show Bitcoin miners can act as flexible energy consumers, helping to stabilize the grid and prevent energy waste during periods of oversupply.

The challenges

However, the document also points out some major challenges in implementing this initiative. The Executive Board emphasizes that the majority of Bitcoin mining currently takes place outside Switzerland, due to fierce competition in the global energy market and the cloud-based nature of the operation.

In Switzerland, rising electricity demand — driven largely by the growth of data centers, electric vehicles and urbanization — is putting pressure on the national grid. The Governing Council also expressed concerns about potential increases in electricity prices and competition with other industries for renewable energy.

Furthermore, the council noted that cryptocurrencies like Bitcoin are not legal tender in Switzerland, so they do not fall under the purview of traditional monetary policy, which creates many legal issues.

From the Governing Council’s perspective, energy allocation should be coordinated by market forces, while energy storage technology should be responsible for absorbing excess electricity rather than government intervention. The Council concluded that Bitcoin mining is more of an international issue than a regional one and recommended rejecting the proposal.

Despite concerns, the bill passed, opening up a wide-ranging debate about the role of cryptocurrencies in sustainable energy use. Proponents argue that Bitcoin mining can spur investment, create jobs, and tap into the underutilized potential of renewable energy.

Source: https://tapchibitcoin.io/bern-thuy-si-thong-qua-luat-nghien-cuu-khai-minh-bitcoin.html