Abkhazia, the de-facto state in the South Caucasus, continues to face an energy crisis. The head of the region’s national power provider recently blamed increased cryptocurrency activity for the problems.

According to Jam News, the annual cryptocurrency ban is not enforced or enforced by local authorities, and miners continue to exploit the region’s low energy costs.

Ruslan Kvarchia, Director of Production and Technology Management of Chernomorenergo, the official energy company in Abkhazia, said:

The total capacity of mining equipment operating in the republic is not less than 40-45 MW. This capacity, subject to daily consumption throughout the year, is capable of consuming about 400 million kilowatt hours, which is most of the expected shortage of electricity in Abkhazia. Estimated for the remaining months of 2020 to 704 million kilowatt hours. ”

However, instead of tightening the screws on cryptocurrency workers, local authorities are considering another solution.

Authorities are considering lifting the ban and permitting all cryptocurrency mining operations across the region. Allowing miners to work in broad daylight, according to the government, could improve communication between all parties involved: energy suppliers, miners, and local authorities.

The government believes that lifting the ban will allow for more tight control over mining and thus better control over energy supplies.

Abkhazia saw an increase in cryptocurrency activity in 2020, despite the fact that cryptocurrency-related activities have been illegal since 2018. Customs officials said that more than $ 589,000 of miners have crossed the border in the past six months.

Source: CoinTelegraph

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