The oil-rich Sultanate of Oman has launched its second crypto-mining center in just over ten months. The crypto mining facility is part of the country’s diversification strategy to move from an oil-dependent economy to a digital one.
A Grand Plan For The Future
Local media outlets report that the nation is about to open a cutting-edge data hosting and cryptocurrency mining facility. This innovative establishment has been cited in the Salalah Free Zone, a special designated economic zone in the country with enticingly low corporate tax rates to attract startups.
The reports also state that Exahertz, a local company, has taken over the management of the crypto mining center. Exahertz is set to drive the center to new heights of success by collaborating with another blockchain firm Moonwalk Systems, headquartered in Dubai.
This strategic collaboration has the potential to usher in a new era of technological progress and economic growth for the region. The construction of the new facility has undoubtedly captured the attention of many.
With costs estimated at $350 million (equivalent to 135 million Omani rials), the facility has the best hardware available, courtesy of Bitmain Technologies. There is also a plan to fit in about 15,000 cutting-edge machines operational by October 2023.
The facility is currently in pilot mode, with 2,000 machines already online and operational. Surprisingly, these machines collectively consume 11 megawatts of power.
Observers believe that the center’s potential will pave the way for a future of technological advancement and innovative progress for the region.
Oman’s Digital Economy Vision
Since last year, the oil-rich country has been trying to diversify its economy to a digital one to leverage opportunities in the ever-expanding blockchain and crypto landscape. The latest move is critical to Oman because the country is heavily reliant on oil exports.
Accordingly, launching this million-dollar facility will enable the Sultanate to accelerate its digital economy visions. Meanwhile, last November, the nation launched another mining hub valued at 150 million Omani rials (or $389 million).
Towards the end of last month, the Oman government released a consultation paper outlining plans for a comprehensive national crypto framework. Among the potential provisions is a requirement for digital asset providers to establish a local presence in the country.
In addition, part of the guidelines mandates service providers to keep a smaller portion of assets in hot wallets, as well as regular audits of safeguarded acquisitions and the presentation of reserves verification. Like other Middle Eastern powerhouses, Oman seeks to enter the crypto and blockchain ecosystem by building structures to attract foreign companies.
Dubai has been the shining light in the region’s quest to make its mark in the digital economy with investor-friendly regulations to position the Emirate as a global crypto hub.