Belarus is preparing to launch its own official cryptocurrency. President Alexander Lukashenko recently disclosed this development to journalists, adding that Belarus has a surplus of electricity.
Belarus Preparing to Issue a National Cryptocurrency, President Lukashenko States
More countries are preparing to issue cryptocurrencies, as digital assets are gaining traction in international markets. Belarus is currently working on creating its cryptocurrency to capitalize on its energy surplus.
President Alexander Lukashenko made the announcement after casting his vote in the presidential election.
According to BELTA, the official Belarusian news agency, he declared:
In Belarus, we are working on creating a cryptocurrency. We have surplus electricity.
Lukashenko stated that this was a joint task between IT specialists and the government and that they were also working on artificial intelligence (AI) initiatives.
“It suits us to make payments in cryptocurrency,” Lukashenko remarked. As an aide to Russia, Belarus also faces a flurry of sanctions complicating the settlement of international payments. In this sense, this digital currency might become a tool to facilitate transnational trade.
This move would be similar to what Russia plans to do with the digital ruble, which is currently in its pilot phase. The State Duma recently profiled its use for sidestepping sanctions and improving state spending controls.
Read more: Russian State Duma Profiles Digital Ruble as a Sanctions-Sidestepping Tool
In a controversial process, Lukashenko won the recent ballot by a landslide, scoring nearly 87% of the vote. Given his permanence in power, the initiative might sprout in the next years.
While mentioning an electricity surplus hints at a possible proof-of-work cryptocurrency, Belarus is not known for abundant domestic energy production. The International Energy Agency (IEA) estimates that in 2022, over 3 quarters of the energy spent by Byelorussians was imported.
Nonetheless, this might change with the recent installation of the second reactor of the Byelorussian nuclear power plant, a development that aims to reduce the dependence on Russian natural gas.
Local media estimates that the two reactors of the Belarusian power plant will meet over 40% of the national energy needs, leading to a reduced use of fossil fuels for energy generation.
