Cryptocurrency miners are set to flock to the Chinese province of Sichuan thanks to its plentiful supply of cheap hydroelectric energy.
Local officials are investigating how they can leverage their power production after President Xi Jinping urged the nation to step up blockchain development.
Jiang Yang, a former vice-chairman of the China Securities Regulatory Commission, told a meeting set up to develop Sichuan that cheap hydropower could tap into the hunger for blockchain dominance, reports Sichuan Daily.
He said: “Sichuan should study further about how the province’s cheap hydropower resources can attract digital currency-related businesses.”
Sichuan, in southwest China, has a long rainy season that starts in May and lasts about four to five months. It is China’s biggest producer of hydroelectric power.
China has also announced it is testing a national cryptocurrency and will release it soon.
President Xi told a meeting of the political bureau of the Chinese Communist Party’s Central Committee that blockchain is vital to the future of the country and urged officials to focus on its development
According to the state-funded Xinhua news agency, Xi stressed that it is “necessary to strengthen basic research, enhance innovation, and strive to let China take the leading position in the emerging field of blockchain, occupy the commanding heights of innovation, and gain new industrial advantages.”
After Chinese President Xi Jinping’s endorsement of blockchain technology last week, the crypto markets rallied spectacularly.
Bitcoin made colossal gains of as much as 42% in a few hours – its highest intraday gain since 2011.