Bessie Liu

<div id="highlights-block_629a6311a4ffd" class="highlights">
 <ul>
 <li>The East African country is one of the top three geothermal energy-producing countries in the world</li>
 <li>This opportunity may put Kenya in a position to be the next bitcoin mining hotspot</li>
 </ul>
 
</div>



KenGen, an electric power generating company in East Africa, has plans to offer bitcoin mining companies its surplus geothermal power in an effort to meet miners’ rising energy demands.



Geothermal power uses heat inside the earth’s crust to generate electricity. The power supply now accounts for <a href="https://www.kengen.co.ke/index.php/our-company/who-we-are.html" target="_blank" rel="noreferrer noopener">39%</a> of energy production at KenGen.



Miners will have the opportunity to relocate to an energy park at KenGen’s main geothermal power station, a little over 100 kilometers from Kenya’s capital, Nairobi. 



Kenya is one of the <a href="https://www.statista.com/statistics/514488/geothermal-generation-worldwide-by-key-country/" target="_blank" rel="noreferrer noopener">top three</a> geothermal energy-producing countries in the world.&nbsp;



The energy producer owns and runs five geothermal power stations, which collectively have a max generation capacity of about <a href="https://www.kengen.co.ke/index.php/business/power-generation/geothermal.html" target="_blank" rel="noreferrer noopener">713 megawatts</a> (MW) of energy. The ground beneath Kenya’s Rift Valley region still holds an <a href="https://renewableenergy.go.ke/technologies/geothermal-energy/#:~:text=In%20Kenya%2C%20it%20is%20estimated,located%20in%20fourteen%20prospective%20sites." target="_blank" rel="noreferrer noopener">untapped</a> 7,000 MW to 10,000 MW of geothermal energy.



Although the US is still the global leader in bitcoin mining, African countries continue to top <a href="https://trends.google.com/trends/explore?q=%22bitcoin%20mining%22" target="_blank" rel="noreferrer noopener">Google search</a> results. Offering a sustainable solution to bitcoin mining companies to enter the country during a time when there have been strong <a href="https://cms.blockworks.co/new-york-passes-bill-restricting-carbon-fueled-crypto-mining-operations/" target="_blank" rel="noreferrer noopener">anti-bitcoin mining stances</a> in countries such as China, the US and Eastern Europe, may in turn put Kenya in position to become the next crypto mining hotspot.



Despite <a href="https://www.centralbank.go.ke/images/docs/media/Public_Notice_on_virtual_currencies_such_as_Bitcoin.pdf" target="_blank" rel="noreferrer noopener">warnings</a> from their government, Kenyans are among the top bitcoin users in the world, according to a <a href="https://go.chainalysis.com/2021-geography-of-crypto.html" target="_blank" rel="noreferrer noopener">Chainanalysis</a> report. 



A move to use geothermal energy for crypto mining could also address some of the <a href="https://cms.blockworks.co/new-york-passes-bill-restricting-carbon-fueled-crypto-mining-operations/" target="_blank" rel="noreferrer noopener">escalating concerns</a> around carbon emissions across the globe.



Todd Esse, founder of HashWorks Digital Industries, a crypto mining fund, told Blockworks geothermal power presents meaningful opportunities for bitcoin miners to reduce their carbon footprints. He also suggested heat thrown off by thermal power plants could be used to generate power for miners. “There’s a lot of wasted energy on the grid where there are combustion turbines running, that produce a lot of waste heat that should be utilized for electricity,” he said.



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Geothermal: Kenya’s Solution to Crypto Mining’s Energy Demand

Sebastian Sinclair

<div id="highlights-block_6205fbaa84437" class="highlights">
 <ul>
 <li>Kenya&#8217;s central bank is requesting public feedback on the applicability of a potential digital Kenyan shilling</li>
 <li>The bank said CBDCs were receiving &#8220;more attention than ever before&#8221;</li>
 </ul>
 
</div>



The Central Bank of Kenya (CBK) is seeking feedback from the public on the applicability of a potential central bank digital currency (CBDC), according to a <a href="https://www.centralbank.go.ke/uploads/press_releases/1985544394_Press%20Release%20-%20Issuance%20of%20Discussion%20Paper%20on%20on%20Central%20Bank%20Digital%20Currency%20for%20Public%20Comments.pdf" target="_blank" rel="noreferrer noopener">press release</a> on Friday.



CBK has issued its <a href="https://www.centralbank.go.ke/uploads/discussion_papers/CentralBankDigitalCurrency.pdf" target="_blank" rel="noreferrer noopener">discussion paper</a> outlining the possible variations of a digital Kenyan shilling as well as the feasibility and risks involved. The paper also examined other payment types including stablecoins and electronic money.



<blockquote class="wp-block-quote">&#8220;It is quite apparent that CBDCs are receiving more attention than ever before,&#8221; the bank said in its release. &#8220;However, a key point to note is that despite the traction in attention, the motivations for the issuance of CBDCs vary across countries, as do the policy approaches and technical designs.&#8221;</blockquote>



It said the benefit of a Kenyan CBDC remains unclear and further research on the specific design was needed to shore up confidence in the country&#8217;s domestic markets before it would consider developing a digital form of the nation&#8217;s currency built atop blockchain tech.



&#8220;Naturally, the balance of risks and benefits of CBDCs will vary from one economy to another,&#8221; the bank said.



Consideration of public opinion follows the bank&#8217;s governor, Patrick Njoroge, last year reiterating <a href="https://www.centralbank.go.ke/images/docs/media/Public_Notice_on_virtual_currencies_such_as_Bitcoin.pdf" target="_blank" rel="noreferrer noopener">CBK&#8217;s stance</a> that crypto, such as bitcoin, are not legal tender and are unregulated. The bank initially urged Kenyans to &#8220;desist from transacting&#8221; via the nascent asset back in 2015.



&#8220;To comprehensively evaluate the potential applicability of CBDC in Kenya, CBK requests for public comments on a number of questions,&#8221; the bank said. It is seeking feedback no later than May 2022.



Kenya currently ranks 5th in the 2021 <a href="https://blog.chainalysis.com/reports/2021-global-crypto-adoption-index/" target="_blank" rel="noreferrer noopener">Global Crypto Adoption Index</a>, according to Chainalysis research. Meanwhile, around 87 countries, representing&nbsp;over 90%&nbsp;of global GDP, are currently in the exploration phase of CBDCs.



A further nine countries have launched their own form of CBDC. Nigeria became the latest country to launch its digital naira, the first outside the Caribbean nations, according to research by <a href="https://www.atlanticcouncil.org/cbdctracker/" target="_blank" rel="noreferrer noopener">Atlantic Council</a>.



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