Marion City Council places moratorium on cryptocurrency mining operations

These businesses have proved controversial across the country because of their electricity and water use and constant noise.

The moratorium, approved at council’s most recent meeting, will give the city time to investigate the impact and develop rules “that would allow for such use while protecting the public health and general welfare of the community and its economic prosperity.”

There is no physical digging in this kind of “mining.”

Cryptocurrency mining is defined as “the continuous process where computers work to solve algorithms to maintain and build algorithmic, or blockchain, and in exchange are granted cryptocurrency,” according to city documents.

Cryptocurrency is a form of currency that exists digitally. It is a digital payment system that does not rely on banks to verify transactions. The cryptocurrency mining uses significant electricity and water resources as part of its operations to power special servers and maintain a cool climate, according to Cotton.

Council Member Chet Effler said this concern has been discussed at meetings of the McDowell Economic Development Association board.

“We need to be laser focused on what our ordinance will look like,” said Effler to the rest of council.

City officials said they are worried about the noise and environmental impact from these operations.

“It can destroy neighborhoods,” said City Manager Bob Boyette. “It can destroy industrial properties.”

This month, WLOS reported on a crypto mining operation owned by an out-of-state-company located near Murphy in an area where there is no zoning. Residents have complained about the noise it produces sounding like a “never-ending airplane engine.”

After holding the public hearing, council agreed to implement the moratorium on cryptocurrency mining.