Ukraine is considering the possibility of using the excessive power supply in the country for cryptocurrency mining operations.
According to a press briefing by the Ministry of Energy and Environmental Protection, the Coronavirus (COVID-19) pandemic is taking a toll on the nation’s economy, which has resulted in the closure of several businesses.
The closure of businesses is causing a surplus of electricity production, and the Ukrainian government is exploring ways to transform this “liability” into “asset.”
The country is planning to establish data centers at its Nuclear Power Plant (NPP) to mine cryptocurrencies, as the nation believes the move would help boost its economy.
Ukraine’s Ministry of Energy and Environmental Protection stated that this new initiative would create a new economy for the country, generate funds for businesses, avert any issue that may arise from the production of excess electricity, as well as put the nation on track for digitization.
Notably, Ukraine had already conducted a pilot project to establish data centers with an energy capacity of up to 1000 MW at its energy power company, Energoatom.
The project was committed to identifying ways that would help in generating constant power supply to meet the needs of data centers in the country, the report added.
The President of Ukraine, Volodymyr Zelensky, has been an advocate for a digital nation reiterating that the country would “prepare initiatives, bills and take steps that remove barriers to the digital economy and e-governance.”
The digitization of Ukraine would open doors for more favorable initiatives that will likely boost cryptocurrency activities in the country.
As reported last year, Ukraine’s Ministry of Digital Transformation signed a Memorandum of Understanding (MoU) with leading cryptocurrency exchange, Binance, to help draft new regulations for the country’s cryptocurrency and blockchain industry.