Spanish lawmaker sees opportunity amid Kazakhstan’s Bitcoin mining collapse

Maria Munoz, deputy for the Spanish Ciudadanos party, has proposed a bill that would make Spain a Bitcoin mining hotspot after the internet outage that occurred in Kazakhstan.

In a tweet, economist and lawyer Munoz affirmed her support for Spain as a Bitcoin destination (BTC), on Friday.

“The protests in Kazakhstan are having repercussions around the globe, but also for Bitcoin. Spain should be seen as a safe place to invest in cryptocurrency. This will allow for the development of a flexible, efficient, and secure sector.

The tweet addressed to the Spanish Congress of Deputies was accompanied by a two-page open letter. Munoz first highlighted the importance of the protests, and the government’s reaction which used “all of the strength of police and army,” before shutting down the internet to the largest Central Asian economic nation.

She cited a study by the Cambridge Centre for Alternative Finance that ranked Kazakhstan second in Bitcoin mining, accounting for 20% of the global hash rate for the second half 2021. According to reports, the hash rate fell 13.4% due to the government effectively pulling the rug under Kazakhstan’s Bitcoin miners.

These events prompted pertinent questions from the pro-Bitcoin lawmaker.

What information does Spain have about the effects of the Kazakhstan internet blackout upon the Spanish crypto mining sector? What measures will the government take to attract investors and those who are fleeing Kazakhstan’s mining industry? What information does the government have about the efficiency of Bitcoin and its growth?

Her party Ciudadanos (or “Citizens”) is a proponent of the Bitcoin network and proposed a national strategy for cryptocurrencies in October 2013. Her party aims to position Spain as a leader in investments in cryptocurrencies from the European Union, and around the globe — and Bitcoin mining could be the catalyst.

Bitcoin hash rate fluctuations repeatedly show that mining infrastructure is not restricted geographically. For example, China’s mining ban was in favor of Kazakhstan and Kosovo.

PrimeBlock’s chief legal officer, Alan Konevsky, explained the mining changes last year to Cointelegraph. “Mining companies, including those that moved after China regulatory changes, established in countries such as Kazakhstan and Kosovo because electricity costs are much lower than in North America.”

This was evident in Kazakhstan’s 2021 growing hashrate. Konevsky explains, however, as a premonition of what might happen in Spain.

We could see miners moving if mining becomes an unviable industry in these countries. Although this industry is mobile to a certain extent, it needs stability. This includes stable political climates and stable inputs including energy.

Munoz hopes Spain will have these Bitcoin-friendly elements. But, political opposition to Bitcoin may be the biggest obstacle. Ernest Urtasun (a member of the European Parliament), ridiculed her tweet.

In a tweet, Munoz called her proposal “a bad joke” and said that BTC mining was “an environmental aberration”. Munoz and Citizens clearly have a lot of work ahead.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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