Petro proposes Bitcoin mining hubs on Colombia’s Caribbean coast

President Gustavo Petro proposed building Bitcoin mining hubs in Barranquilla, Santa Marta and Riohacha that would run on Colombia’s surplus renewable electricity and offer co-ownership to the Wayúu indigenous community. He wrote on X that the plan would be “an immense boost to the development of the Caribbean.”

Petro said the facilities could tap clean energy to attract foreign investment and turn low-cost or unused electricity into revenue. The proposal targets three coastal cities on Colombia’s Caribbean coast where the Wayúu are the largest Indigenous group.

Analysts have pointed to economic opportunities in converting spare power into cash flow. Jaran Mellerud, managing partner at Hashlabs, noted that mining can monetize unused electricity capacity in emerging markets. Alessandro Cecere of Luxor Technology highlighted Paraguay’s experience, where access to Itaipu dam hydroelectric power helped push the country’s share of global Bitcoin hashrate to roughly 4.3%.

A World Bank report from April 2024 found about 75% of Colombia’s electricity comes from renewable sources. Petro linked the renewable energy plan to environmental concerns, saying Bitcoin produced with fossil fuels raises greenhouse gas emissions and climate risks.

Industry shifts could open opportunities for low-cost power markets. Commercial miners in the United States have been allocating power and equipment to artificial intelligence and high-performance computing workloads, which can free up capacity elsewhere and allow other countries to increase their share of the Bitcoin network’s computing power.

Petro’s proposal comes as his presidential term nears its end. He leaves office in August and is not a candidate in Colombia’s May 31 election. Prediction market data show Senator Iván Cepeda Castro and lawyer Abelardo de la Espriella as leading contenders to replace him; neither has made notable public comments on cryptocurrencies.

No implementation timeline was provided. Any project would require federal approvals, private investment and formal agreements with local communities, including the Wayúu. Supporters say mining can bring jobs and revenue; critics raise regulatory and social concerns that would need to be addressed before projects proceed.