Manning: Bitcoin mining not supported by government

Minister in the Ministry of Finance Brian Manning said the government is not supporting bitcoin mining at this time. He made the statement in response to a question from Independent Senator Amrita Deonarine in the Senate on Tuesday.

Deonarine asked whether, in light of a statement on April 27 that the Trade and Industry Ministry is in in the process of reviewing this country’s legislative and policy framework to understand the possibilities for a cryptocurrency sector in TT, there was a timeline for the development of a policy framework on the matter, and a timeline for the introduction of legislation in Parliament.

Manning said cryptocurrencies, of which bitcoin is the most popular, are completely bereft of intrinsic value and are highly speculative in nature.

“Bitcoin has raised financial concerns for governments worldwide and despite its use for buying goods and services, there are no uniform international laws that regulate bitcoin. Crypto is also not supported by central banks, nor are crypto deposits insured.

"The speculative nature of the digital currency also leads to extraordinary price volatility and extreme uncertainty in terms of its asset value and price stability. Further, cryptocurrency exchanges are prone to cyberattacks, while the cryptocurrencies themselves show evidence of price manipulation.

Crypto has also been used to facilitate a host of illegal activities, including money laundering, extortion, illicit drug trading, terrorist financing, and human trafficking. Cryptocurrencies have already been banned or restricted partially or wholly in over 100 countries.”

He said given what is known of cryptocurrencies, including the “excessive and wasteful use of taxpayer subsidised electricity involved in bitcoin mining, the government is not supporting bitcoin mining in TT at this time.”

Deonarine inquired about a newspaper report which said a bitcoin-mining farm had been proposed by companies at the Tamana InTech Park at a total investment of US$0.5 billion.

Manning responded, “Government is not supporting bitcoin mining in TT at this time and all those who have approached the government have been informed of that.”