Swiss Canton of Bern Pushes Forward Bitcoin Mining Report Amid Opposition

Key Takeaways:

• Bern's parliament approved a Bitcoin mining report with 85-46 votes.
• The initiative seeks to integrate renewable energy and improve grid stability through Bitcoin mining partnerships.
• Despite this progress, the canton's executive arm opposes the motion.

The parliament of Switzerland’s Canton of Bern has approved a motion to commission a report on Bitcoin mining despite strong opposition from the Government Council. 

The initiative, introduced in March 2024 by the bipartisan Parliamentary Group Bitcoin, secured 85 votes in favor and 46 against in the Grand Council.

Bern Parliament Supports Bitcoin Mining Report, But Government Council Opposes Proposal

The “Cantonal Bitcoin Strategy III” motion seeks to position the Canton of Bern as an innovative hub for Bitcoin mining. 

🚨 JUST IN: Switzerland's Canton of Bern's parliament has voted 85-46 in favor of exploring #Bitcoin mining's potential to stabilize the energy grid and utilize wasted energy in the country.

Reports have it that the Government Council opposed the motion but the Swiss People’s… pic.twitter.com/Jpfpi07lGu

— Coinwaft (@coinwaft) November 29, 2024

The report will assess renewable energy sources, potential collaboration with miners, and the role of Bitcoin mining in stabilizing the electricity grid.

However, the Canton of Bern's executive authority, the Government Council, strongly opposed the motion. Officials argued that energy use in Bern is largely an international concern because the canton exports energy. 

They also highlighted growing energy consumption from other data centers and advancements in energy storage technology as reasons to deprioritize Bitcoin mining.

Moreover, the council stressed that the classification of Bitcoin as a non-legal tender places it outside the Swiss National Bank's jurisdiction, making it subject to unpredictable market trends.

Despite the Government Council's resistance, the motion passed with significant backing from the Swiss People’s Party, Green Liberal Party, Center Party, and EDU, alongside dissenting support from left-green groups.

Parliament member Samuel Kullmann celebrated the outcome, stating that “ the debate was heavily influenced by classic FUD arguments and missed the point.”

With a clear verdict of 85 to 46 votes the parliament of @kanton_bern demands a report on the potential of #Bitcoin mining to stabilize our #energygrid and the use of otherwise wasted #energy.
The proposal was co-sponsored by @simonryser (Green Liberal Party), @KorabRashiti1… pic.twitter.com/WnTNzNdPi4

— Samuel Kullmann (@samuelkullmann) November 28, 2024

The Parliamentary Group Bitcoin cited the U.S. state of Texas as an inspiration. Texas has integrated Bitcoin mining into its energy policy, using it as a means to stabilize the power grid, promote renewable energy, and attract global mining firms.

Advocates of the Bern strategy believe similar benefits could be realized in Switzerland.

Broader Implications of Bitcoin Mining And Switzerland’s Pro-Crypto Legacy 

Globally, Bitcoin mining remains a controversial topic due to environmental concerns. 

Critics like Greenpeace claim that the industry fosters dependency on fossil fuels and accuse the Bitcoin mining sector of exacerbating climate change. However, data shows that other sectors contribute far more to carbon emissions. For instance, Google’s data centers generated 14.3 million metric tons of carbon dioxide in 2023 – far exceeding Bitcoin mining’s footprint.

Against this backdrop, Switzerland has emerged as a global leader in cryptocurrency adoption. The city of Zug, famously known as “Crypto Valley,” is home to the Ethereum Foundation and numerous blockchain firms. 

Switzerland's Crypto Valley:

– 1,128 companies
– 6,002 employees
– 10 Unicorns (+$1B)
– 2 Decacorns (+$10B)
– 1 Hectocorn (+$100B)
– Combined value of $611.8B pic.twitter.com/uZlVsxlYz0

— Blockworks (@Blockworks_) February 19, 2022

Switzerland’s financial sector has also embraced cryptocurrency. In July, PostFinance, a government-owned bank, launched custody and trading services for alternative cryptocurrencies such as Avalanche, Polkadot, and Solana.