• While the local hydroelectric plants are selling power to miners, there’s a market for clients from abroad looking for reliable, cheap power.
• Mining is very profitable for both local and international miners. However, the government prefers to move slowly while not interfering in mining operations.

Many equipment that is used for Bitcoin mining get their energy from a hydroelectric station. This small river flows in the middle of the Central American rainforest, which contains sugar cane and coffee plantations.

The government had stopped purchasing electricity from the hydroelectric plants during the pandemic, and there was an excess of energy. Its administrators were forced to reconsider the business.

That was when the idea of ​​selling hydroelectric power to Bitcoin miners operating in the country came up. 150 miners own approximately 650 machines, which are currently in operation 24 hours a day. Eight containers house the equipment, which are supplied with power by the plant.

Open House of the First Digital Mining Center

Data Center CR inaugurated this first Digital Mining Center in the country, located at the Poás I Hydroelectric Plant (San Pedro de Poás), in April of last year. The hydroelectric plant is located right next to the Poás River, a small source of water located 35 kilometers (22 miles) from the capital, San José.

Costa Rica generates most of its energy from renewable sources for many years.

“We had the activity halted for nine months. And exactly one year ago I was informed about Bitcoin, digital mining, and blockchain.”
Eduardo Kooper (president of Data Center CR), owner of the plant, and 60 hectares of farm, explained.

“Initially, I was skeptical. But we realized that the business requires a lot energy. We have surplus.”
The executive was added to the family business.

This hydroelectric plant comprises three plants, each with three megawatts of generation and an estimated value of US $ 133.5 million. US$ 500,000 was spent by the company to convert the plant into a digital mining operation.

The government lacks momentum

Kooper says that foreign cryptocurrency miners could establish farms in Costa Rica if they need cheap, clean energy, and stable Internet access. Costa Rica is a country with enough energy, and has the technological infrastructure needed.

Kooper said that, despite having the best conditions in the region and the ability to hire more people to the mines, the government was not aggressive enough.

This point has been largely ignored by the government. Congress hasn’t approved any specific regulations for Bitcoin and other crypto currencies. Costa Rica’s Central Bank prefers not to restrict cryptocurrency trading or mining activity with regulation, but to permit it to grow.

“We are currently working on an innovation center, which will act as an informal information and conversation hub between the industry operators, startups, and those who want to promote innovative ideas in Fintech.”
Rodrigo Cubero Brealey, president of the issuing organization was announced in October.

It is important to hear other opinions

It can provide a platform where authorities can brainstorm smart regulations and discuss the possible regulatory elements.
Cubero.

Flipside

• While the government is open to cryptocurrency mining and trading, and has supported technological innovation in general, it took care before establishing a legal regulatory framework.
• Unlike its neighbor El Salvador, which approved the BTC as legal tender, the Costa Rican authorities consider that it is not convenient to use it as a unit of account for the payment of taxes and the purchase – sale of goods and services.

What You Need to Care About

• While the Digital Mining Center has a lot of local miners, it is also possible to attract foreign investors.

According to Mauricio Rodríguez, a young computer security engineer, who entered digital mining last year, this center offers many advantages.

Installing it there is far more profit than doing so at home.
He said. After connecting his equipment to the grid, he estimates his cost savings have been almost 50%.

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