El Salvador is about to invest 1 billion USD to build a Bitcoin mining farm

According to Reuters, the public-private joint venture will invest $1 billion to build one of the world's largest Bitcoin mining farms. The company participating in the project - Vocalno Energy said the project will start with an investment of $250 million and is backed by leaders in the Bitcoin industry along with renewable energy development companies.

Volcano Energy President Max Keiser said the money will go toward building a 241 MW wind and solar project in northwest El Salvador to power a Bitcoin mining farm.

Bitcoin mining has always been heavily criticized by environmental activists. Bitcoin mining consumes a huge amount of electricity because it requires the use of high-powered computers connected to the global network.

El Salvador is the first country in the world to accept Bitcoin as legal tender

The announcement comes two years after El Salvadoran President Nayib Bukele announced his decision to legalize Bitcoin despite the International Monetary Fund (IMF) warning that the legal risks associated with cryptocurrencies would make financial markets vulnerable to disruption.

Bukele and Bitcoin supporters believe the cryptocurrency could create more jobs and attract foreign investment to El Salvador, one of the poorest countries in the Western Hemisphere. According to Volcano Energy, the Salvadoran government will receive 23% of the project's revenue, private investors will receive 27%, and the remaining 50% will be used to reinvest in infrastructure.

Despite unstable internet, El Salvador still has big ambitions for bitcoin

Stablecoin issuer Tether is one of the investors in Volcano Energy. Tether chief technology officer Paolo Ardoino said the company aims to promote investment in Bitcoin mining infrastructure and renewable energy production.

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