British Columbia in Canada is preparing to completely ban new crypto mining connections to protect its Hydro power grid. However, analysts are completely against this move.
The government of British Columbia cites unprecedented electricity demand in banning new crypto mining connections to the hydro power grid. The government issued a set of new legislation aimed at stimulating the economy and helping the state-owned electric utility provider BC Hydro address its power availability.
“There are significant opportunities in British Columbia’s traditional natural resource sectors, including mining, natural gas and LNG, and in emerging sectors, such as data centers and artificial intelligence (AI). The success of proposed major projects hinges on access to reliable, clean electricity at a competitive industrial rate,” it read.
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As part of the regulatory changes that will go into effect in fall 2025, there will be “limits on the power available for data centers and AI,” as well as a permanent “ban on new BC Hydro connections to the electricity grid” for crypto miners.
Charlotte Mitha, president and CEO of BC Hydro also believes in significant opportunities in the sector.
“We’re seeing unprecedented demand from traditional and emerging industries. The province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable,” she said.
BC Hydro is the main power supplier in the region, serving more than 5 million people, around 95% of the local population, as per its website.
Canada Bans Crypto Mining Amid Great Analyst Opposition
The BC government took a more positive outlook for data centers and AI stating that the two sectors would be given sufficient help “in a manner that results in the greatest benefit to people in British Columbia.”
However, when it comes to crypto, the BC government believes crypto mining uses “disproportionate energy consumption” and that the sector offers “limited economic benefit”.
Last month, Abu Dhabi also banned crypto mining on farmlands, implementing a 100,000 AED fine on violators.
Crypto mining analysts say otherwise
While the crypto mining sector keeps receiving flak from the governments, those in the industry have not held back when it comes to fighting the misconception.
For instance, Bitcoin environmentalist Daniel Batten has fought hard to rectify negative narratives surrounding crypto mining and educate on ways that Bitcoin mining can be incorporated among energy climate action initiatives.
Meanwhile, other provincial Canadian governments like Vancouver are moving to become a “Bitcoin-friendly city,” while British Columbia actively looks to ban access of cryptocurrency miners to its power grid.
