The Kyrgyz Republic, a Central Asian country bordering China, is said to be expanding its cryptocurrency mining capacity with the support of the local government.
Kyrgyz President Sadir Japarov has given the green light to the construction of a mining farm that will be built on a hydroelectric power station, Kyrgyz national news agency Khabar reported on July 27.
Kyrgyz government in Kambar-Ata-2 H.P.P.
According to the president, launching a cryptocurrency mining farm will allow the government to eliminate energy losses associated with the unused capacity of power plants, the report said.
Since Kambar-Ata-2 was launched in 2010, Kyrgyzstan has lost 6.8 billion kilowatt-hours (kWh) of energy due to this problem, Japarov said. By developing mineral reserves, the Kyrgyz government can use the remaining energy properly and benefit from the state budget, the president said.
“As soon as the mines started working, the money they earned went to the electricians or rather the common people. Every time, every kilowatt-hour is controlled by an electrical engineer. Everything will be automated and under our control.
These reports are somewhat contradicted by recent news related to the energy sector in Kyrgyzstan. In the year On July 24, the President of Kyrgyzstan declared a state of emergency in the energy sector of Kyrgyzstan, which will begin on August 1, 2023 and end on December 31, 2026. According to official information, this state of emergency is due to climate challenges, water scarcity in the Narin River valley and lack of generation capacity due to excessive growth in energy consumption.
In a recent Khabar report, Japarov emphasized that cryptocurrency mining in Kyrgyzstan is rewarded at a rate of 5 KGS ($0.057) per KW.
The Kyrgyz government's press office did not immediately respond to Cointelegraph's request for comment. This article will be updated pending new information.
Kyrgyz state authorities are considering cryptocurrencies as an opportunity to stimulate the local economy.
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In the year In March 2022, Kyrgyz MP Karim Hanzeza called for the legalization of the cryptocurrency industry during a parliamentary committee meeting of Kyrgyz officials. The official said that "nothing is growing as fast as cryptocurrencies" and urged the government to develop a legal framework.
In the year Despite various laws being enacted for cryptocurrency exchanges in 2021, the Kyrgyz government has yet to adopt cryptocurrency-related laws. A few years ago, a former government official said that cryptocurrency mining was the main reason behind the energy crisis in Kyrgyzstan.
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