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Crypto Mining Activities In Sichuan About To Explode?

Crypto Mining Activities In Sichuan About To Explode?

It looks like Sichuan is well on its way to becoming the next great mining center in China. Colin Wu reported that the deputy mayor of Ya’an, a city in Sichuan, announced that they would support the conversion of the city’s hydropower into mining services. 

This and the upcoming rainy season have prompted a lot of miners to shift to Sichuan.

“The deputy mayor of a city in Sichuan said at the meeting that he would support the conversion of clean energy (hydropower) into Hashrate services. The rainy season in China is coming, a lot of Bitcoin miners are moving to Sichuan.”

Ya’an Bullish Towards Mining

Ya'an actively embraces blockchain technology and wants to build on this burgeoning digital economy. One of the major steps in this direction is utilizing green energy in computing power service resources like mining. In 2020, a total of 41 enterprises in Ya'an were included in the pilot policy for hydropower consumption, with contracted electricity of around 1.34 billion kWh. That’s an increase of 840 million kWh over 2019.

Plus, Sichuan is perfectly positioned for sustainable mining energy since it receives 5 months of rainfall and has many tributaries flowing to the Yangtze river, making it ideal for hydroelectric power production throughout the year. As Wu sums it up:

“Sichuan's attitude towards Bitcoin mining is relatively supportive, because hydropower has nowhere to be used except for mining, otherwise it will be wasted.”

China’s Crackdown on Thermal Pollution Moving Mining Center To Sichuan

As reported earlier by Crypto Daily, China is committed to meet the world's carbon emission target, as decided by the UN General Assembly in 2020. As a result, they have decided to crack down on the Inner Mongolian province and Xinjiang. Inner Mongolia is known for its coal mining and failed to control its energy consumption in 2019. As a result of this lockdown, mining activities in this area are bound to go down and make Sichuan the next hub for China's crypto mining industry. Regarding this, Wu had earlier tweeted:

Due to the suppression of thermal power by China's carbon neutrality goal, Sichuan is expected to become more active this summer and become the absolute center of cryptocurrency mining in China and even the world.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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