Ethiopia Attracts Billions by Legalizing Bitcoin Mining and $250 Million Partnership

In 2022, Ethiopia legalized Bitcoin mining, leveraging its vast hydroelectric power resources from the Grand Ethiopian Renaissance Dam (GERD). The government is collaborating with West Data Group on a $250 million data mining project, combining Bitcoin mining and artificial intelligence (AI).

Experts predict that Bitcoin mining could contribute between $2 billion and $4 billion to Ethiopia’s GDP in the coming years, providing much-needed foreign currency reserves. The cheap and abundant hydroelectric power makes Ethiopia an attractive destination for foreign miners from China, Russia, the UAE, and Europe.

Despite the government’s enthusiasm, the Ethiopian public remains cautious, viewing cryptocurrencies as volatile and unpredictable. However, global attention on Ethiopia’s mining potential may shift perceptions and position the country as a leader in digital technologies.