Digital Power Optimization (DPO) is leading a project to turn cryptocurrency mining into a service for the industry in Colombia.
Digital Power Optimization shared its plans to turn Colombia into a cryptocurrency hub. DPO therefore aims to reach out to the country’s power generation companies so they can sell excess energy or make better use of their power plants.
As Valora Analitik reports, DPO tries to create cryptocurrencies as a service (cryptocurrency mining as a serviceCMaaS), and thus offers these companies the purchase of energy that has no immediate delivery commitment.
The idea of DPO is to be able to carry out its project with which it intends to create cryptocurrencies using one megawatt of energy (1 MW).
Conversations with thermal generators in Colombia
The company assures that it has already had talks with the presidents of heat generators to share the business idea with them, which would mean receiving additional income without representing additional expenses.
“Energy producers receive a price for their energy, they will not need to reduce the production of their already financed and built assets due to lack of electricity demand at certain times.”
According to DPO, as a benefit for the sale of excess energy or for their underused plants, producers would receive a price equal to or higher than what they have signed in their current contracts.
For digital energy optimization, mining, computers, operations and the resulting free cash flow can be owned and controlled by the owner of the power generation asset with a vertically integrated structure.
This reduces any potential regulatory issues, allowing the plant owner to retain nearly all of the potential investment.
According to Alejandro Beltrán, Buda.com’s CEO for Colombia, this type of initiative helps eliminate the negative environmental image of Bitcoin mining “that has been so criticized by environmentalists for its impact,” and added:
“The project is interesting and somehow replicates the early stages of mining in Sichuan, China, where it is about capturing the excess supply that an area produces in energy, including renewable hydroelectric resources.”
Regulations for cryptocurrency miners in the country
According to the audit services firm BDO Colombia, taxpayers interested in cryptocurrencies should recognize their fiduciary obligations, as cryptocurrency miners are also subject to revenue generation.
“Cryptocurrency miners, or people who are dedicated to creating virtual currencies using machines or software, are also subject to income generation, as they receive a commission or compensation for their work that DIAN interprets as income in kind.”
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