As is tradition, let's start with an explanation. Bitcoin mining using geothermal volcano energy was an initiative of President Salvador Nayib Buquele. The idea was for environmentally friendly BTC mining, which would turn the results of volcano activity into digital currencies.

The power plant was first unveiled at the end of September 2021. As a caption to the video, the president published the phrase "first steps".

That being said, it’s not the first time that what’s happening with cryptocurrency in the country as a whole has been criticised. This has been addressed by the creator of Etherium, Vitalik Buterin, among others. He felt that the introduction of crypto as a means of payment at this rate and in this manner could be described as “forced adoption”. Well, the very concept of imposing digital assets runs counter to the idea of freedom that is so important in the crypto niche.

El Salvador’s criticism of cryptocurrencies doesn’t end there. Here’s another portion of it.

How cryptocurrencies are mined on a volcano

Salvadoran environmentalist Ricardo Navarro has been critical of President Nayib Buquele’s decision. Here is one of his quotes published by the news outlet Decrypt. In it, the expert shares a not entirely positive view of what is happening.

Geothermal energy still costs more than oil, otherwise we would be using it much more. What will eventually happen is that we will simply “buy” more oil.

That is, the expert makes it clear that this initiative will not improve the country's environmental situation in any way, as it still needs non-renewable energy sources. Meanwhile, the very idea of mining bitcoins using volcano energy was to produce the cryptocurrency without harming the environment. And it looked particularly promising given the vocal criticism of Bitcoin over the threat to nature this spring - including from Ilon Musk.

Environmentalist Ricardo Navarro

Navarro also questioned Buquelet’s decision to develop the infrastructure for another project – an entire “cryptocity” next to volcanoes. The expert continues.

Talking about building this city by a volcano is like thinking you’re rich because you live next to a bank.

As a reminder, here we are talking about creating a separate Bitcoin city within the state. Its main feature is to be tax-free, with the exception of VAT. In this way, the government wants to attract successful cryptocurrency investors - and capital at the same time - to the state. Read more about this initiative in a separate article.

President of El Salvador Nayib Buquele

In addition to the economic costs, there are also potential environmental concerns. Navarro says geothermal energy requires steam from groundwater. And in some parts of El Salvador there is a shortage of drinking water, so the active use of volcanoes would only exacerbate the situation.

The environmentalist’s scepticism was echoed by Marit Brommer, executive director of the International Geothermal Association. Here is his rejoinder.

El Salvador is known for its geothermal potential. But if the president promises to do something in the next six months, it is not feasible.

Accordingly, the expert does not see the implementation of the idea voiced as a near-term prospect.

Projects on this scale take years to implement, she says. That is, Bukele is too optimistic in his plans – they are unlikely to be realised in the near future.

El Salvador’s President Nayib Bukele


We believe that such radical ideas are doomed to face criticism, so this development was to be predicted. Still, many people still see cryptocurrencies as something illegal and fraudulent, so they will resist the innovation that others are going for. And while the promotion of Bitcoin in El Salvador does seem a bit excessive, the country is doing a lot to popularise crypto anyway. So fans of decentralisation can only rejoice at the situation.

What do you think about it? Share your opinion in our Millionaire Crypto Chat. There, we’ll talk about other hot topics that are affecting the blockchain and decentralization industry.