Amid growing concerns about the energy sector in Kyrgyzstan, a former government official claimed that cryptocurrency operations were the main factor behind the energy crisis.
The local news agency Tazabek reported on Wednesday that Daniyar Akmatov, a former director of the State Investment Protection Agency, Investment Promotion and Protection Agency, discussed issues in the Kyrgyz energy sector at a round table in Bishkek.
The former official said that cryptocurrency mining poses problems for the country’s energy sector, along with other factors such as the weakening of the Kyrgyz as well as weak marketing of energy investments.
“Electricity consumption has increased due to cryptocurrency mining, and this has led to an energy crisis,” Akmatov said, adding: “The amount is declining due to the high exchange rate of the dollar, and Kyrgyzstan is a country dependent on imports and tariffs. …
Kyrgyz President Sadir Jabarov recently proposed increasing electricity bills at home to address ongoing energy shortages. Jabarov said domestic energy companies owe UZS $ 129 billion ($ 1.5 billion) and said the country’s most important energy infrastructure has been outdated for years due to corruption among senior officials.
Kyrgyzstan has sought to regulate cryptocurrency mining in the country, but has not yet adopted any specific rules.
Other countries also blame Bitcoin mining (BTC) for power shortages. Abkhazia has experienced an electricity crisis due to 625 coded mines called the Small Home Autonomous District.