Canton of Bern Passes Motion to Explore Bitcoin Mining for Grid Stability

Switzerland’s Canton of Bern parliament has approved a motion to explore Bitcoin mining as a way to utilize surplus energy and stabilize its electricity grid. 

The initiative, introduced by the cross-party Parliamentary Group Bitcoin on March 14, 2024, passed with a decisive 85 to 46 vote in the Grand Council despite government opposition.

The initiative directs the government council to assess how Bitcoin mining can repurpose unused energy and create economic opportunities.

Introduced by the bipartisan Parliamentary Group Bitcoin, the “Cantonal Bitcoin Strategy III” proposal seeks to make Canton of Bern “an attractive location” for firms with an innovative Bitcoin strategy.”

The motion tasks the government with preparing a report addressing three key points: identifying areas with unused energy in Bern, evaluating how Bitcoin mining could utilize this surplus in collaboration with Swiss mining companies, and assessing its potential to stabilize electricity grids during periods of supply fluctuation.

“Bitcoin mining companies bring in investments, create jobs, and help to develop renewable energy sources in many places around the world,” the proposal states.

The proposal received backing from several political factions, including the Swiss People’s Party, Green Liberal Party, Center Party, and EDU, with even some dissenting voices from left-green groups, according to Blocktrainer report.

Samuel Kullmann, an EDU representative and key proponent of the motion, hailed the vote as a victory against skepticism. 

“Even though the debate was heavily influenced by classic FUD arguments and missed the point, the proposal ultimately found a clear majority,” Kullmann said.

Drawing comparisons to Texas, where Bitcoin miners have partnered with grid operators to balance energy supply and demand, the proposal suggests Bern could replicate similar success.

The government council, which implements laws in the canton, has previously recommended rejecting the motion, noting concerns over energy consumption, competition with other sectors, and Bitcoin’s non-legal tender status.

Bitcoin Mining and Criticism

The debate over Bitcoin mining is often dominated by concerns about its environmental impact, with critics pointing out the energy demands of proof-of-work cryptos like Bitcoin exceed that of many nations.

In March, the global non-profit group Greenpeace accused the Bitcoin mining industry of having “deep ties” with the fossil fuel industry and “right-wing climate deniers,” triggering massive backlash against the group.

However, emerging research suggests that banning Bitcoin mining may not reduce emissions as intended. 

A recent study found that crypto mining restrictions in certain regions could inadvertently increase global carbon emissions by shifting operations to countries with less sustainable energy sources.

Despite criticisms, proponents argue that Bitcoin mining can act as a flexible energy consumer, helping to repurpose surplus electricity that would otherwise go to waste.

Edited by Sebastian Sinclair