Lukashenko Pushes for Cryptocurrency Mining to Reduce Belarus’s Dollar Reliance

Lukashenko views cryptocurrency mining as a key strategy for de-dollarization.

Belarus has a legal framework for digital assets, attracting global blockchain firms.

Surplus energy in Belarus offers a unique opportunity for cryptocurrency mining growth.

Belarusian President Alexander Lukashenko has identified cryptocurrencies as a potential way for countries to break free from reliance on the U.S. dollar. At a government meeting discussing the Belarusian Nuclear Power Plant’s performance and energy consumption, Lukashenko addressed the topic of global de-dollarization

Lukashenko’s Stance on De-Dollarization

Lukashenko directly linked the global efforts to move away from the dollar with the potential of cryptocurrency. He referred to the issue as a “global problem” and pointed out that digital currencies could help alleviate some of the pressures. The president downplayed the risks of cryptocurrency mining, particularly its instability, and suggested that such risks were worth taking in the pursuit of reducing dependence on the dollar

According to him, while volatility may exist, the potential rewards outweigh the risks. Lukashenko’s comments on cryptocurrency come after Belarus has made significant steps toward supporting digital assets. In September 2023, he urged regulators to finalize cryptocurrency regulations that had been delayed. He expressed frustration over the lack of comprehensive rules, which he believed hindered Belarus’s ability to fully engage in the global crypto space

Meanwhile, Lukashenko insisted on the necessity of regulation that would be clear and transparent as a way of bringing both local and foreign investors to Belarus. This appeal for straightforward and practical cryptocurrency laws underlines the cruciality of a dependable legal structure that will allow the country to grow in digital technology.

Energy and Crypto Mining Potential in Belarus

Belarus’s surplus electricity could play a pivotal role in supporting cryptocurrency mining. Lukashenko recognized this opportunity earlier this year when he discussed the potential of using excess energy for digital asset mining. His remarks came after reports that other countries, including El Salvador and Bhutan, had embraced Bitcoin mining as a strategic reserve asset. Lukashenko pointed out that the U.S. government had recently considered creating a crypto reserve, reinforcing the global trend toward digital currencies

He mentioned that Belarus could benefit greatly from this trend, provided regulations are put in place to enable growth in the sector The country of Belarus possesses a legal framework for digital assets envisioned by Decree No. 8 “On the Development of the Digital Economy.” The law, which was passed in 2017, acknowledged the existence of digital tokens and laid down the legal ground for their use

Additionally, the decree allows for tax exemptions for entities and individuals working in the Hi-Tech Park, which is a special economic zone meant to promote the digital economy. Thus, these measures have made Belarus one of the first countries to regulate cryptocurrency with the approval of the state, luring overseas blockchain firms to the country.