The process of mining bitcoin or any other cryptocurrency is tedious and costly. The expense of covering an adequate amount of electricity is substantial, and two French legislators are looking to change that. According to reports, these legislators have already submitted multiple proposals around the same idea – giving crypto mining companies preferential pricing on electricity usage.
In an effort by the parliament to include cryptocurrency and blockchain technology in the local economy more, the regulators suggested that mining be considered “electro-intensive activity.” These regulators, Jean-Michel Mis and Laure de La Raudière added that the miners should have a lower rate to pay for electricity, due to the crypto assets that they bring to the market.
Jean-Michel Mis believes that the positive working conditions would bring in additional users, and that these miners need to be more evenly distributed around the world. The legislator noted, “We must have our own mining farms here in France,” adding that China and the US are the main players in the space right now.
Much of the energy needs in France are dealt with using nuclear power, which is cost-efficient in the economy. Presently, over 70% of the electricity in the country is the result of the work of almost 60 nuclear reactors. Based on data collected by Statista, France presently has the cheapest electricity of almost any other country in Europe at only $0.19 per kilowatt hour this year.
When the regulators presented their request this week, they commented that the local government “shouldn’t miss the blockchain train.” To support this developing industry in their economy, the regulators proposed an allocation of about $568 million for the next four years. They suggested compiling the funds from some of the existing accounts in the government, like that of the French Public Investment Bank, Bpifrance, and the National Agency for Research.
Laure de La Raudière said, “We would like France to get ahead this time.” She added that either the European Central Bank or the Bank of France should participate in “testing of a digital currency” of their issuance.
Jean-Michel Mis believes that 2019 will bring a lot of progress into the blockchain technology industry. In a statement to French business weekly La Tribune, he said, “This ten-year old technology is moving out of the experimental stage into industrial implementation. The general public will see the emergence of uses that affect their daily lives.”
Over the last few months, France has been becoming progressively more welcoming to cryptocurrency in their economy. They established guidelines for initial coin offerings already in September. In November, the National Assembly placed their support behind an amendment that would reduce taxation on cryptocurrencies next year.