Swiss canton passes legislation to explore Bitcoin mining with surplus energy

Samuel Kullmann, a member of the Swiss canton of Bern parliament, passed legislation to explore Bitcoin (BTC) mining as a potential solution to address surplus electricity production in the region.

Lawmakers have tasked the Executive Council with preparing a comprehensive report on how Bitcoin mining could utilize unused energy and contribute to stabilizing the electricity grid.

Evaluating potential

Kullmann celebrated the bill’s passing, with 85 favorable votes against 48 contrary voices, thanking Dennis Porter and Julian Liniger for their educational efforts. Porter is the CEO and founder of the Satoshi Action Fund, while Liniger is the CEO of the Bitcoin custody app Relai.

The motion, spearheaded by the bipartisan “Parliamentary Group Bitcoin,” reflects a growing interest in positioning the region as a forward-thinking hub in the evolving financial landscape. 

Advocates argue that embracing Bitcoin mining could provide economic and technological benefits while using renewable energy resources better. The report aims to identify areas in Bern where electricity production exceeds local consumption and explore partnerships with Swiss Bitcoin mining companies to utilize the surplus. 

Proponents also seek an analysis of how Bitcoin mining could support grid stability, especially during periods of fluctuating energy supply.  

Bitcoin mining relies on an energy-intensive proof of work consensus algorithm, which is key to the asset’s scarcity and decentralization. 

The bill cited that global examples, such as Texas, have demonstrated how Bitcoin miners can act as flexible energy consumers, helping to stabilize grids and prevent wasted energy during periods of oversupply. 

Reservations

However, the document also highlights some of the challenges in this endeavor. The Executive Council noted that most Bitcoin mining occurs abroad due to the competitive global energy market and the activity’s cloud-based nature.

In Switzerland, increased electricity demand — driven by data centers, electric vehicles, and urbanization — already strains the grid. Additionally, the Executive Council highlighted concerns about potential price increases and competition with other sectors for renewable energy.

The council also emphasized that crypto like Bitcoin are not legal tender in Switzerland, falling outside traditional monetary policy and raising regulatory concerns.  

From the council’s perspective, market conditions should dictate energy allocation, with storage technologies responsible for absorbing energy surplus rather than state intervention. It concluded that Bitcoin mining is more relevant as an international issue than a regional one and recommended rejecting the proposal.  

Despite the reservations, the motion was approved and has sparked a broader debate about the role of crypto in sustainable energy use. Advocates see Bitcoin mining as a way to drive investment, create jobs, and unlock untapped potential in renewable energy.

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