Costa Rican Lawmaker Proposes to Regulate Crypto Market

Johana Obando, a congresswoman from the Central American country of Costa Rica, has introduced a bill to Congress requesting the government to regulate the crypto market and cut taxes on cryptocurrencies, making Costa Rica a cryptocurrency-friendly country.

The bill proposes that the Costa Rican government recognize cryptocurrencies and allow people to hold, trade freely, and spend cryptocurrencies.

Johana Obando mentioned on his official Twitter that Cryptoassets Market Law (MECA) will “protect individual virtual private property, self-custody, and decentralization of crypto assets” from the country’s central bank – but in “perfect harmony” with it “.

Johana Obando, along with members of Congress Luis Diego Vargas and Jorge Dengo, proposed that Costa Rican citizens should not be taxed on goods purchased using cryptocurrencies, and the government should not tax cryptocurrencies generated from mining, but that profits from trading cryptocurrencies would be subject to income tax.

Obando said the move would attract foreign investors and fintech companies and create jobs for Costa Rican citizens.

As cryptocurrencies continue to gain popularity worldwide, many countries have placed great emphasis on cryptocurrencies.

Costa Rica also ranks among the countries with the highest acceptance of cryptocurrencies.

In 2018, according to the country’s law, in Costa Rica, part of an employee’s salary can be paid in cryptocurrencies, and wages can be paid not only in fiat currency but also in commodities. Some legal experts believe that cryptocurrencies are suitable for this category.

In addition, Costa Rican law provides for the use of generally accepted assets as a means of payment.

The country’s work code allows workers to receive part of their wages in cryptocurrency. They can also negotiate with employers about how much cryptocurrency they want to receive.

Unlike El Salvador, which uses bitcoin as legal tender, the bill proposes introducing cryptocurrencies as private virtual currencies that can be used and circulated freely but not as national legal tender.

Image source: Shutterstock


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More Green Energy: Crypto Mining Saves A Hydro Power Plant In Costa Rica

Green energy powers most of Bitcoin mining and the world might as well face it. And the rest of the cryptocurrencies that use Proof-Of-Work might be right behind, because they follow the same incentives. In their quest for cheaper energy sources, they all reach the same conclusion. Humanity is wasting renewable energy all over the world. And wasted energy is the cheapest of them all. 

In today’s story, a hydropower plant that had to pause operations for nine months found cryptocurrency mining and got the dream client they needed. Reuters gives us the prelude to the story:

“The plant was forced to reinvent itself after 30 years because the government stopped buying electricity during the pandemic due to surplus power supply in the Central American country, where the state has a monopoly on energy distribution.”

How much green energy does a country has to have to just stop buying from a clean hydro plant? Well, according to

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“At the end of 2016, Costa Rica reached a total installed hydropower capacity of 2.12 GW. The country dominated the headlines for the second consecutive year, achieving 100 per cent renewable electricity production for a total of 271 days.”

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How Did Crypto Mining Enter The Hydro Plant’s Picture?

Every talking head and their grandmas spread ESG FUD through traditional media. And that spills into social media, where everybody is oh-so-sure that crypto mining is boiling the oceans. Because of that, Eduardo Kooper, the owner of the plant, doubted going the crypto mining route. However, they just had to pivot. They tried other ventures, like making frozen food, and none of them work. There was no other choice.

“I was very skeptical at first, but we saw that this business consumes a lot of energy and we have a surplus.”

The hydroelectric company, with its three plants valued at $13.5 million and a three Megawatt capacity, invested $500,000 to venture into hosting digital mining computers.”

Why would miners move their operation to a hydro plant, though? Wouldn’t it be more comfortable doing it at home? They are heavily incentivized to look for the cheapest energy possible, that’s why. And green energy is renewable. Coal is not. The Reuters report quotes one of the hydropower plant’s satisfied customers:

“Installing it in this place is much more profitable than at home,” at almost half the cost, he calculated, after connecting his computer to the network at the river-powered plant.”

Business is business.

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Green Energy And Crypto Mining, A Match Made In Heaven

We at NewsBTC have been telling you this. Bitcoin mining incentivizes the creation of green energy infrastructure. And it can finance green energy plants already in place. Mining provides both a buyer of first resort and a buyer of last resort. Three months ago, we wrote:

“A whitepaper by the Bitcoin Clean Energy Initiative from earlier this year had explained how bitcoin mining, when using renewable energy, “is especially suited to accelerate the energy transition” towards a cleaner electricity grid.”

And two months ago, in an article on how Bitcoin mining is helping the Navajo Nation in more ways than one, we told you:

“As the world is trying to phase out coal-powered energy, the Navajo innovate to keep up with the times. According to Walter Hasse, Navajo Tribal Utility Authority president, “I had excess electricity that I still had to pay for and deal with. Now, I want to build renewable energy to replace my lost coal resources that are throughout the nation. I need someone to consume that renewable energy resource.”

And with Bitcoin mining, they have that buyer. And now, the other PoW cryptocurrencies can follow Bitcoin’s example. In Costa Rica, the other side of the world, a power station manager reaches the same conclusion as the  Navajo Tribal Utility Authority president. Quoting Reuters again:

“Kooper said international cryptocurrency miners are looking for clean, cheap energy and a stable internet connection, which Costa Rica has plenty of. However, he said Costa Rica’s government should be more aggressive about trying to attract more crypto mining business, although he gave no specifics.”

The Green Energy Future We Deserve

Proof-Of-Work mining is a net positive for the planet. It will lead us to the green energy future that humanity’s dreaming of. It’s the only industry that can do so. And the revolution is already well underway. 

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