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Sichuan Energy Meeting Offers Glimmer of Hope for Bitcoin Miners

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There appears to be a ray of positivity for Chinese Bitcoin (BTC) miners, after a meeting of energy stakeholders in the province of Sichuan appeared relatively sympathetic to the miners’ cause.

Th Xiluodu Dam and Hydroelectric Power Plant. Source: Adobe/contributor_aerial

Per a report from Jiemian-Cailian Press, Sichuan power chiefs held a “research seminar” on June 2 to help them “understand” the status quo for crypto miners operating in the province. The meeting was hosted by the provincial power regulator, as well as the regional branch of the State Grid Corporation of China – the national power supplier – and the region’s energy investment bureau.

Although the regulator “mainly solicited opinions from power and energy companies in the province,” per unnamed Sichuan energy insiders who apparently attended the meeting, the mood appeared to be generally positive. The seminar, though, “did not form any resolutions,” the report continued.

The sources noted that the meeting was “mainly for discussion,” but explained that speakers noted that Sichuan is “rich in hydropower resources,” with most hydropower providers in the province “not currently operating at full capacity.”

Speakers also concluded that “people’s livelihoods” and the situation for power companies “needed to be considered” in discussions, and continued crypto mining activities in the province “should not have a negative impact” on the province.

On Twitter, China observers such as Sally Wang of Sino Global Capital noted that “according to industry insiders,” the “conference level is not high and it has no policy significance.”

Wang also cautioned that China’s “top-down” policy-making process meant that “no matter what provincial governments such as Sichuan issue, they follow the guidance of the central government.”

The same may not be true, however, in other parts of China. Although Sichuan is a mining hotspot, so are other regions that make use of considerable coal-powered electricity, such as the Xinjiang Uygur Autonomous Region and the Inner Mongolia Autonomous Region, which have both been put under pressure to reduce carbon emissions to help China meet its goal of attaining net carbon zero emissions by 2060 – with Beijing pointing the finger of blame squarely at crypto miners.
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