Amid growing concerns about the energy sector in Kyrgyzstan A former government official has argued that cryptocurrency mining is a major contributing factor to the energy crisis.
Daniyar Akmatov, Former Director of the State Investment Protection Organization, Investment Promotion and Protection Agency, addressed the challenges in the Kyrgyz energy sector at a round table in BishkekThe local news agency Tazabek reported on Wednesday.
The former official said crypto mining is causing problems for the country’s energy sectoralong with other factors like the devaluation of the Kyrgyz Som and the poor promotion of energy investments.
“Power consumption due to cryptocurrency mining has increased and this has created an energy crisis.”Akmatov added, “The Som is depreciating due to the rise in the dollar, and Kyrgyzstan is a country that is dependent on imports and tariffs. They depend on them too.”
The President of Kyrgyzstan, Sadyr Japarov,Recently it was proposed to increase household electricity tariffs to remedy the current blackoutJaparov said local energy companies have a debt of Som 129 billion (USD 1.5 billion) and He claimed that the country’s central electrical infrastructure had been out of date for years due to corruption among senior state officials.
Kyrgyzstan has tried to regulate crypto mining activities in the country but has not yet issued specific regulations.
Other countries have also blamed Bitcoin mining (BTC) for energy shortages.Abkhazia has reportedly been experiencing an electricity crisis due to the 625 cryptocurrency mining farms that the small autonomous region is home to.