Philippe Couillard, the premier of Quebec has temporarily put a stop to all of the new cryptocurrency mining operations being conducted in the Canadian province alongside the state-owned Hydro-Quebec Distribution company.
All Offshore Applications Have Been Halted
Quebec is known for the fact that it is able to produce cheap electricity and in abundance. That is why it is a popular destination for many cryptocurrency mining industries looking to carry on their cryptocurrency mining operations. Quebec however, has put a halt to all operations saying that even though it has Â a lot of electricity being produced to meet all the demands of customers approaching the Canadian province, the future projects which are being proposed by offshore applicants will require several thousands of megawatts in electricity to be produced.
Hydro-Quebec Distribution is currently producing more than enough electricity to cater to the citizens in the region and also support the resource exhaustive cryptocurrency mining operations. The future prospective targets have been put on hold until a proper analysis can be done on the supply needed.
With all new projects being halted, Hydro-Quebec Distribution is currently working on a guideline based on the information it will obtain from the analysis so that it can determine which of the proposed projects in the blockchain sector it can find feasible to take on. It is also important to note that this time is being taken to consider the tariffs and different conditions which will have to be considered in the blockchain sector.
Government Intervention the Cause of Temporary Halt
The decision by Hydro-Quebec Distribution to halt cryptocurrency mining operations temporarily has come as a surprise to many. This is in consideration of the fact that the state-owned utility company had actually been working on plans to double its revenue generation by 2030 by incorporating the blockchain sector being a major contributor in its increasing revenue generation.
The management of the cryptocurrency market has been essentially taken over by the government for all intents and purposes with the company being told to await new instructions from the government. The move comes in light of the heightened demand for electricity during the exceptionally cold winter months. The government will simply take no chances to face the problem of a power shortage for the citizens due to unavailability because the cryptocurrency mining operations are using too much of the necessary resources.
Domestic Cryptocurrency Mining Operations on the Rise
With all the talk of all offshore applicants being denied, the number of domestic cryptocurrency mining operations has been on the rise. The Hydro-Quebec Distribution company has been entertaining plenty of requests from individuals who have been consuming over 5,000 percent of the regular electricity usage in households.
Couillard is considered to be inspired by the regulatory measures being taken up against the world of cryptocurrencies by authorities all around the world. It should also be noted that even though the intentions of the government might be kind, there have been previous instances where the government has tried to resist changes in the technological atmosphere. There were attempts to ban Uber, and drives to implement more taxes on the big internet companies.
How all of this plays out remains to be seen but it will have a significant impact on the world of cryptocurrency however the scenario plays out.
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