El Salvador has emerged as a leader in using renewable energy for cryptocurrency mining, having extracted 474 Bitcoin worth $29 million through geothermal power from the Tecapa volcano. This pioneering effort, employing 300 mining processors, utilizes 1.5 megawatts (MW) out of the state-owned power plant’s 102 MW capacity, showcasing the country's innovative approach to addressing environmental concerns associated with Bitcoin mining’s energy consumption.

In a historic move in 2021, El Salvador became the first nation to adopt Bitcoin as legal tender alongside the US dollar. Following this milestone, the country set up a geothermal plant for Bitcoin mining, contributing to a total of 5,750 Bitcoins, valued at around $354 million.

Despite receiving criticism from global organizations like the World Bank, President Nayib Bukele remained steadfast in his Bitcoin strategy, even announcing plans to buy one Bitcoin daily during the bear market of 2022-2023, a decision seemingly validated by his victory in the 2024 presidential election.

The debate on Bitcoin mining's environmental impact has sparked controversy within the crypto community. Groups advocating for greener mining methods, like Ripple-backed Greenpeace, propose transitioning from proof-of-work to proof-of-stake. New York Governor Kathy Hochul took a bold step in November 2023 by enacting a two-year ban on proof-of-work methods, making New York the first state to do so.

In a significant move, Tesla opted out of accepting Bitcoin payments due to environmental concerns despite investing $1.5 billion in the cryptocurrency. CEO Elon Musk hinted at reconsidering this decision if over half of Bitcoin mining shifts to renewable energy sources, as suggested by reports indicating that over 60% of current Bitcoin mining relies on renewables. However, Tesla has yet to adjust its Bitcoin payment policy, and the company faces legal action over Clean Air Act violations.