Members of the Mohawk Council of Kahnawake (MCK) and the newly formed Kahnawake Blockchain Technologies (KBT) are enthusiastic about the possibility of boosting the region’s potential for economic growth via cryptocurrency mining.
In order to power cryptocurrency mining activities, members of the Mohawk Nation are investigating the possibility of obtaining electricity from Hydro Quebec to research crypto-mining opportunities that could be added to the council’s economic development portfolio, as per a report from Canada’s Local Journalism Initiative.
MCK chief Mike Delisle, who also leads the council’s economic development portfolio, believes that crypto mining might provide an interesting potential for inhabitants of Kahnawake to increase their income.
“With zero investment and an opportunity here to create a new industry, or at least a new industry within Kahnawake, it’s exciting for revenue generation and for the development of services,” Delisle said in a statement on September 16.
MCK applying for more energy
The MCK is in the process of requesting for extra electricity from Hydro Quebec, while at the same time, the MCK is having discussions about a cooperation with a firm named Pow.re. Pow.re explains that the cryptocurrency mining initiative will not need for financial support from Kahnawake.
According to Delisle:
“Our revenue generation and business development team has a mandate to sit down and formally negotiate terms of a possible agreement with Pow.re.”
Paul Rice, a representative for Pow.re in the local spokesperson, was quoted as saying that “financial risk to the community is very minimal.” Rice believes that the company and the MCK are working toward the conclusion of a deal that will be to the Kahnawake’s advantage.
Rice explains that the mining rigs would be kept in shipping containers, and that Kahnawake would be eligible for a predetermined share of the Bitcoin (BTC) that would be mined as a result of the activities.
According to the report that was written by the LJI, the Pow.re representative also said that the site had previously been cleared and that there would be “minimal impact to the grounds.” Rice went on to say that this development allows “basically a free roll on the upside of the price of Bitcoin.”