By Landon Manning
A commission set up by New Hampshire Governor Chris Sununu on the subject of cryptocurrency has made an official recommendation to the state government: that bitcoin use in the state be encouraged and incentivized and that miners be offered partnerships to improve the electrical grid.
This news comes in late January, following the conclusions of Governor Sununu’s “Commission on Cryptocurrencies and Digital Assets,” formed last February. Tasked with investigating a broad range of topics into the economic impact of cryptocurrency in general, the commission was created to help ensure that New Hampshire be “an excellent jurisdiction to attract the highest quality banking and financial businesses and the well-paying jobs they offered to our citizens.”
Its report was released in December 2022, and opened with the claim that there is a resourceful and energetic world of economic activity in the crypto community, despite any bad press from the dramatic collapses of exchanges, altcoins or NFTs. One of the report’s most-emphasized points is that the state should provide regulatory clarity to protect both consumers and the economy, and the report also repeatedly calls attention to the positive impacts of Bitcoin in many walks of life. Quite notably, it discussed Bitcoin and the power grid.
Acknowledging claims that fossil fuel mining operations are detrimental to the environment, the report made a strong and well-researched claim that renewable energy in Bitcoin mining can both stabilize the grid and even encourage new renewables. The story is a classic example of mining in 2023: unlike many users, a mining rig is very interruptible. When renewable plants generate power with no demand, miners can quickly activate and, when there is high demand, quickly cease functions. Among other benefits, it creates a wholly-new incentive to open new renewable plants. The commission recommended that mining firms enter into official partnerships with the state for this very purpose, setting up permanent operations near existing power plants.
The commission’s report seems to have been well received, with Governor Sununu claiming that its timely, “specific recommendations would establish New Hampshire as a leading jurisdiction for the development of sound and effective applications of blockchain technologies.” This comes on the heels of a pair of reports in Q4 2022 made to the state of Texas, with one encouraging a similar regime of friendliness through regulations and tax credits, while another made by the state power grid announced a voluntary program for miners to cut operations during hours of peak demand.
Although New Hampshire’s plan seems more specifically tailored to the advantages of Bitcoin mining with this focus on renewable energy, both are certainly a model for state governments moving forward. New Hampshire has much less of an extant mining community than Texas, which has skyrocketed to be a world leader, and plans must accommodate reality. But of course, it’s worth noting, Texas produces more renewable energy than any other state. In any event, any Bitcoiner will surely find it heartening that local governments are insisting on the positive impacts of cryptocurrency, and are looking forward to seeing new ways of integrating it. With forward-thinking programs like this in the future, the opportunities for Bitcoin are truly limitless.
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