Marathon Digital, a major player in Bitcoin mining, has announced a new partnership with Kenya’s Ministry of Energy and Petroleum (MOEP). This partnership is reportedly going to boost Kenya’s renewable energy sector.
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The collaboration focuses on sharing technical knowledge, research, policy ideas, investment strategies, and developing critical energy infrastructure. Marathon plans to contribute to Kenya’s sustainable energy future using its expertise and resources.
Marathon Will Boost Kenya’s Renewable Energy Sources
According to the International Trade Administration (ITA), more than 80% of Kenya’s electricity comes from renewable sources. Kenya uses a mix of wind, solar, hydroelectric power, and geothermal energy. Geothermal energy is the biggest contributor to Kenya’s power grid. Kenya is one of the world’s lowest-cost geothermal energy producers. Due to its abundant sunlight, the country is also perfect for solar energy.
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Marathon Digital CEO Fred Thiel is enthusiastic about this new venture. He said, “This agreement with the Ministry of Energy and Petroleum is a pivotal moment for our business. It provides us with a clear framework to pursue opportunities across the Republic of Kenya. It demonstrates the innovative approach that Kenya is taking to optimize their energy usage and to enhance their technological infrastructure.”
Kenya Might Have Changed Its Stance on Crypto
MOEP’s partnership with Marathon Digital is a big step. Kenya’s government has been cautious, even hostile, towards blockchain and cryptocurrency projects. This collaboration marks a shift in attitude. In September last year, the government banned Worldcoin from operating in Kenya for a year.
They cited privacy concerns, a lack of transparency, and security issues with Worldcoin’s biometric data collection. Worldcoin can resume operations after the ban, but it must reapply and get approval from Kenya’s Capital Markets Authority. It also needs to complete a Data Protection Impact Assessment (DPIA) and a state-administered data security workshop.
Kenyan President William Ruto announced at the American Chamber of Commerce Kenya Business Summit that Marathon would consult with the National Treasury and Ministry of Energy. U.S. Commerce Secretary Gina Raimondo and Marathon were platinum-level sponsors of the summit.
Kenya Has a Remarkable Crypto Adoption Rate
If the talks lead to Marathon’s presence in Kenya, it would not be the first crypto miner there. Efforts to regulate crypto in Kenya began in November 2022, two months after Ruto took office. The International Monetary Fund noted lax crypto regulation in Africa in November 2022. Kenya ranked 11th in the world for crypto adoption that year.
The bill to tax and regulate crypto is still under consideration. The government sought advice from the Blockchain Association of Kenya on a virtual asset service provider bill. The United States has tried to protect American crypto interests in Kenya. They unsuccessfully urged Kenya to lift the suspension of Worldcoin activities.
Cryptopolitan reporting by Jai Hamid
