The canton of Bern (Kanton Bern), one of the 26 cantons that make up the Swiss Confederation, finds itself at a digital crossroads. While parliament has taken a bold step by approving a study on the feasibility of Bitcoin Mining, the cantonal government maintains a conservative stance, opposing this initiative.
The study was actually proposed by the Bitcoin Parliamentary Group, composed of 23 members, from the 160 deputies of the canton of Bern. Basing their proposal on the commitment of other countries that have already integrated Bitcoin mining companies into their own energy policy as flexible and reliable electricity consumers for energy that would otherwise not be used. In fact, the proposal was approved with 85 votes in favor and 46 against.
“With a clear verdict of 85 votes to 46, the parliament of the canton of Bern calls for a report on the potential of Bitcoin mining to stabilize our power grids and use energy resources that would otherwise be wasted.”
Bitcoin Parliamentary Group
Digital gold, green energy? Bern seeks the perfect balance
The report mainly aims to show:
According to this, Bern could also have the potential to become an attractive location for mining companies. Which could create jobs, promote the expansion of renewable energy and stabilize the electrical grid in times of electricity shortages and overproduction.
To all this, Samuel Kullmann, member of the canton’s parliament, declared: “Although the debate was heavily influenced by classic FUD arguments and did not address the underlying issue, the proposal ultimately obtained a clear majority. “This result is an expression that the narrative about Bitcoin is changing.”
Response from the Governing Council
According to the Government Council, the executive authority that applies the laws and administers the canton in the canton of Bern, there is no unused energy left in the production of electricity. The market regulates supply and demand and, in the worst case, excess supply is sold on the market at low prices.
Furthermore, the long-term overproduction planned for the summer months will probably be shifted in the future mainly to short-, medium- and long-term storage. So that decentralized producers can use it in a more economical and sustainable way and, consequently, relieve the electrical grid.
If, as the postulators suspect, Bitcoin mining can selectively contribute in the future to the utilization of otherwise unused energy (e.g. photovoltaics) or to the stabilization of the electrical grid. So, this should be the result of the play of market forces and does not require any government intervention.
On the other hand, the Governing Council points out that Bitcoin and other cryptocurrencies are not legal tender that can only be issued by the National Bank. Consequently, Bitcoin and other cryptocurrencies escape the control of the money supply and, therefore, the guarantee of price stability by the National Bank and government supervision, which entails other risks.
For the reasons mentioned and the conclusion that electricity consumption for Cryptocurrency mining is an international issue and not primarily a cantonal or Swiss issue, the Governing Council requests that the postulate be rejected.
However, with the approval of the motion, the Government must analyze in depth the implications of Bitcoin mining. Without a doubt, the coming months will be key to defining the future of this technology in the country.
I close with this phrase from Yuval Noah Harari: “Crypto mining is the dance of calculation, where bits become coins and miners become the dancers of the digital age.”
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