Stablecoin issuer Tether (USDT) has moved to invest in El Salvador’s $1 billion renewable energy project to help the adoption of Bitcoin (BTC) in the Central American country.
The firm, which is responsible for issuing USDT in the cryptocurrency markets, is one of a handful of companies investing in El Salvador’s renewable energy generation project. Volcano Energy will generate electricity from solar and wind power in El Salvador, powering future Bitcoin mining operations in the country. Tether has announced that it will invest in Volcano Energy to leverage this facility for exposure to power generation and powering Bitcoin mining farms in the future.
Ardoino emphasized that he believes El Salvador is leading the adoption of Bitcoin, despite the relatively slow adoption of BTC as a payment option in the country. Ardoino claims that the road to widespread BTC use and adoption in El Salvador will take time, primarily given that citizens are not compelled to use the alternative currency in their daily lives. Ardoino also opposed widespread rhetoric about the environmental impact of Bitcoin mining and criticism of the industry’s straining on the global energy grid.
First, a large part of Bitcoin mining is already done with renewable energy. Secondly, Bitcoin mining already mostly uses a lot of energy, but even more if we build the energy generation first.
Ardoino said that Tether’s investment, together with a group of 12 investors, aims to establish a power generation facility that companies, factories and households can also benefit from.
Excess energy from Volcano Energy will be used to mine BTC, helping El Salvador become a ‘unicorn with its own unique story’.