Kenya’s government has extended an invitation to Marathon Digital Holdings to discuss their energy requirements and the possibility of establishing operations in the country, according to local reports.
Despite efforts by the central bank to discourage cryptocurrency investments, Kenya has emerged as one of Africa’s leading crypto markets and consistently ranks first globally for peer-to-peer trading.
Africa as a whole has embraced cryptocurrencies, with several countries in the region diverging from Western approaches and adopting Bitcoin. The latest country to advocate for adoption is Kenya, which is actively seeking to attract some of the world’s largest Bitcoin miners to set up operations.
Local reports indicate that the Kenyan government has reached out to BTC miners to engage in discussions regarding their energy needs and the support required to establish operations in the country.
During a recent investment summit in the capital city, Nairobi, Kenyan President William Ruto expressed the following:
“Marathon Digital has been invited to consult with the Treasury on cryptocurrency regulations and the Ministry of Energy to address the energy requirements for cryptocurrency mining.”
President Ruto pledged his government’s support for global investors interested in establishing BTC mining operations in the country. This includes the creation of special zones where energy will be subsidized to attract more miners, especially considering the challenges posed by rising power rates within the sector.
The President further stated:
“The special economic zones program offers an attractive package of fiscal, infrastructural, procedural, and regulatory incentives, contributing to Kenya’s increasing global appeal as an investment destination.”
Kenya’s pursuit of Bitcoin miners marks a significant shift for the country’s flourishing crypto ecosystem. Over the years, the Central Bank of Kenya (CBK) has discouraged the public from investing in crypto, citing the lack of regulation, absence of underlying assets, and speculative nature of virtual currencies as reasons for concern.
In a statement, the apex bank advised investors: “CBK reiterates that Bitcoin and similar products are not legal tender, nor are they regulated in Kenya. Therefore, the public should refrain from engaging in transactions involving Bitcoin and similar products.”
However, Kenyans have disregarded these warnings, with the country ranking in the top three in Africa for crypto adoption, along with Nigeria and South Africa. In 2022, Kenya ranked 19th globally for crypto adoption and fifth for peer-to-peer volume, surpassing countries like the US, the UK, Argentina, and Turkey in the latter category.
Kenya is just one of several African countries that have embraced cryptocurrencies. Nigeria remains the leading nation on the continent, despite its highly publicized crackdown on Binance, as reported by Crypto News Flash. Nigeria ranked second in crypto adoption last year, coming in second to global leader India. However, it ranked first in peer-to-peer exchange trade volume.
Bitcoin mining is gaining traction in Africa.