Countries' Strategies in Dealing with Cryptocurrency Mining.
In Russia, the availability of cheap energy sources, such as natural gas and hydroelectric power, has encouraged mining, as President Vladimir Putin signed a law in August 2024 allowing registered companies and individuals to participate in mining operations.
In the United States, a supportive approach has been adopted by regulating mining in states like Texas and Wyoming, focusing on the use of renewable energy sources such as wind and solar power.
In contrast, China imposed a comprehensive ban on Bitcoin mining in 2021, yet data from CryptoQuant indicates that 55% of the global Bitcoin hash rate still comes from clandestine mining operations within the country.
El Salvador is one of the most Bitcoin-friendly countries, having designated it as legal tender and relying on geothermal energy from volcanoes for mining operations.
However, the International Monetary Fund has urged the Salvadoran government to stop Bitcoin mining as part of the conditions of a $1.4 billion loan agreement.