Amid growing concerns about the energy sector in Kyrgyzstan, a former government official argued that cryptocurrency mining is a major driver of the energy crisis.
Daniyar Akmatov, former director of the national investment protection organization, the Investment Promotion and Protection Agency, addressed the challenges of Kyrgyzstan’s energy sector at a roundtable in Bishkek, the agency reported on Wednesday. local press Tazabek.
The former official said crypto mining was causing problems for the country’s energy sector, along with other factors such as the devaluation of the Kyrgyz som and poor promotion of energy investments.
“Electricity consumption due to cryptocurrency mining has increased and this has led to an energy crisis,” Akmatov said, adding, “The som is depreciating due to the rising exchange rate of the dollar, and Kyrgyzstan is an import dependent country and tariffs depend on it as well. “
The President of Kyrgyzstan, Sadyr Japarov, recently proposed to increase household tariffs for electricity to address the current energy shortage. Japarov said local power companies had a debt of 129 billion som ($ 1.5 billion), and he claimed that the country’s basic electricity infrastructure had been obsolete for years due to corruption. among senior government officials.
Kyrgyzstan has sought to regulate crypto mining activities in the country but has yet to adopt concrete regulations.
Other countries have also blamed Bitcoin mining (BTC) for energy shortages. Abkhazia has experienced an electricity crisis due to the 625 crypto mining farms that house the small autonomous region.