Ethiopia’s Bitcoin Mining Venture Sparks Controversy with Hong Kong Data Centre Partnership

There’s new speculation going around the collaboration between the Hong Kong data centre and the Ethiopian government. This collaboration is taking a turn towards Bitcoin mining and other related activities.

A memorandum of understanding has been signed between Data Centre Service, a Hong Kong West data subsidiary and Ethiopian Investment Holdings. Ethiopia and West Data are planning to collaborate on a $250 million project for establishing an advanced infrastructure system of data mining and training in artificial intelligence in Ethiopia.

Kal Kassa, CEO for Ethiopia at Hashlabs Mining

However, the mining of Bitcoin is still controversial in Ethiopia. The Grand Ethiopian Renaissance Dam built on the Blue Nile River tributary is now partially functional and has resulted in Ethiopia having the world’s second-lowest electricity rates.

This has sparked controversy since half of the population in Ethiopia still lacks access to electricity in their homes.

Bitcoin miners have formed a lobby in Ethiopia, supported by groups like Project Mano and BitcoinBirr. Additionally, Ethiopia is working with Input Output Hong Kong (IOHK), the developers of the Cardano blockchain, to reform its education system.

West Data Group is a fintech powered by blockchain. It opened its first data centre in Kentucky in 2017 and has since expanded to several other locations, including Texas, Kazakhstan, Angola, and Kenya. According to the company’s website, they have repositioned their strategic focus on Bitcoin mining, digital currency investment, and trading since 2021.

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