Colombian President Proposes Building a Bitcoin Mining Hub

The Colombian president pointed to the impact Bitcoin mining has had in Paraguay, which is now the fourth-largest country by Bitcoin mining hashrate.

Colombian President Gustavo Petro said the nation’s Caribbean coast has the potential to become a Bitcoin mining hub, leveraging its surplus renewable energy to attract foreign investment and spur economic development.

In a post on X on Tuesday, Petro said the Caribbean cities of Barranquilla, Santa Marta and Riohacha could host Bitcoin (BTC) mining facilities and tap the country’s clean energy sources, following a similar path to Venezuela and Paraguay in recent years.

“It’s an immense boost to the development of the Caribbean,” Petro said, proposing that the Wayúu community — Colombia’s largest Indigenous community, which mainly resides on the Caribbean coast — could be co-owners of the project.

Bitcoin mining analysts such as Hashlabs managing partner Jaran Mellerud have said the industry can have a sizable economic impact on emerging countries looking to convert otherwise unused electricity into cash flow.

There’s also an opening for countries with low electricity costs to capture a larger share of the Bitcoin network hashrate as US commercial miners continue expanding into AI and high-performance computing in pursuit of higher-margin opportunities.

Petro’s remarks were made in response to a post from Luxor Technology’s Alessandro Cecere, who noted that Paraguay’s share of Bitcoin hashrate has risen to 4.3% since tapping into hydroelectric energy at its Itaipu dam.

The small, landlocked South American country is now the fourth-largest Bitcoin miner behind the US, Russia and China.

A World Bank report published in April 2024 found that Colombia generates as much as 75% of its electricity from renewable energy — more than twice the global average.

Tapping these renewable sources would mitigate concerns flagged by Petro that Bitcoin mined with fossil fuels contributes to global warming and potential “climate collapse.”

Petro has served as Colombia’s president since August 2022 and has adopted a relatively neutral stance on Bitcoin and the crypto industry.

Petro would only have another three months to lead the Bitcoin mining initiative as his presidential term comes to an end in August.

He is not running in Colombia’s upcoming presidential election on May 31 due to constitutional limits.

Data from prediction market Kalshi suggests that left-leaning Senator Iván Cepeda Castro and Abelardo de la Espriella, a conservative lawyer and free-market advocate, are the clear front-runners to replace Petro.

Neither candidate has made significant public comments on Bitcoin or digital assets to date.