ASHEVILLE, N.C. (828newsNOW) – Buncombe County extended its moratorium on cryptocurrency mining operations on Tuesday, but high land prices in the area might be the real reason no such projects are on the drawing board here, Planning Director Nathan Pennington told 828newsNOW.
“I think the land costs keep us from seeing proliferation issues,” Pennington said, after commissioners voted to extend a one-year moratorium that technically had expired on May 1, 2024.
Cryptocurrency “mining” operations have created concerns in jurisdictions from coast-to-coast because they can be so resource-intensive. Cryptocurrency “mining” is the process of creating virtual currency, such as Bitcoin, by using banks of computers to solve complicated math problems that verify transactions.
Large and expanding operations can use increasing amounts of energy and land, and in some places they’ve raised concerns about air quality, noise and other issues.
BUNCOMBE COUNTY MIGHT EXTEND CRYPTO-MINING MORATORIUM
Buncombe County commissioners first enacted a moratorium on crypto-mining in May 2023, directing staff to research the issue for text amendments imposing regulations. By extending the moratorium, it effectively buys the county more time, until April 30, 2025.
“It’s still a relatively new industry,” Pennington told commissioners. He pointed out that the U.S. Congress still is wrestling with how to regulate it.
Pennington said county officials are looking at it from a land-use perspective and are trying to come up with regulations that differentiate between crypto-mining and standard data centers, pointing out that Buncombe County already has two of those.
“We want to be very careful…so we can line this up with our other text amendments,” he said.
County Commissioner Terri Wells briefly commented on the need to think carefully and complete the research, and then commissioners voted unanimously to extend the moratorium with little further discussion.
Pennington said afterwards that energy usage would be a major concern if crypto-mining operations do come to Buncombe County. He said it might work against the county’s goal of reducing energy consumption overall.