Stablecoin firm Tether to invest in renewable energy, Bitcoin mining in Uruguay

ISTANBUL

Stablecoin firm Tether announced that it has decided to invest in renewable energy production and sustainable Bitcoin mining operations in Uruguay.

The company, which is behind the world’s biggest stablecoin by market volume, said it will collaborate with a local licensed company in the country in order to promote sustainable Bitcoin mining by investing in renewable energy resources.

“By harnessing the power of Bitcoin and Uruguay’s renewable energy capabilities, Tether is leading the way in sustainable and responsible Bitcoin mining,” Tether CTO Paolo Ardoino said Tuesday in a statement.

“Our unwavering commitment to renewable energy ensures that every Bitcoin we mine leaves a minimal ecological footprint while upholding the security and integrity of the Bitcoin network,” he added.

Uruguay generates 94% of its electricity from renewable sources, mostly wind and solar, according to the statement.

Bitcoin and cryptocurrencies have long been criticized for consuming too much electricity and leaving a carbon footprint during their mining – a process that verifies blockchain transactions, or creating new units of cryptocurrency, which require large amounts of computing power.

Tether’s market volume was more than $83 billion on Wednesday, coming in third among cryptos after Bitcoin and Ethereum, according to data from the digital asset price-tracking website CoinMarketCap.

Stablecoins are designed to be pegged one-to-one with the US dollar in order to ease exchange for crypto users and investors during trading without converting their money back into fiat currencies.

The company says its Tether tokens are backed 100% by its reserves that match or exceed the amount required to redeem all Tether tokens in circulation.

Tether announced on May 17 that it will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin.

• Bitcoin
• Renewable Energy
• Stablecoin
• Tether
• Uruguay