- Ethiopia plans to stop all crypto mining by 2025.
- Decision affects Bitcoin and Ethereum operations.
- Energy resources allocated to public electrification.
Ethiopian Electric Power announced plans to phase out crypto mining by 2025, citing concerns over its electricity consumption and impact on national electrification targets.
The phase-out reflects Ethiopia’s prioritization of energy for domestic needs, potentially reducing Bitcoin’s local hash rate and impacting related revenue streams.
The Ethiopian Electric Power (EEP), a state-owned entity, announced plans to cease all crypto mining operations.
Concerns emerged over mining’s electricity use, expected to comprise one-third of Ethiopia’s power demand by 2025.
EEP targets national electrification goals by reabsorbing resources previously allocated to crypto mining. Hydropower surplus once attracted miners to Ethiopia, but priorities are shifting under governmental scrutiny.
The phase-out will mainly impact Bitcoin and Ethereum mining, specifically projects using Ethiopia’s energy. Mining activity contributed to significant electricity consumption, prompting a policy shift to preserve energy for public needs.
Financial implications are notable, with reduced mining export revenues and hard currency flows. The move is driven by energy demand priorities, emphasizing the need for sustainable resource management in Ethiopia.
The planned phase-out of all mining operations is crucial to protect our national electrification goals and ensure sustainable energy utilization. — Ethiopian Electric Power (EEP)
In similar past cases, countries like China and Kazakhstan have imposed restrictions on crypto mining. Ethiopia’s decision is parallel, aiming to secure energy for essential sectors ahead of secondary operations.
The cessation highlights Ethiopia’s focus on financial stability and resource allocation. Historical trends show that resource-constrained nations often eliminate energy-intensive sectors for broader economic gain.
