Former gov’t official blames crypto mining for energy crisis in Kyrgyzstan

Amid growing concerns about the energy sector in Kyrgyzstan, a former government official has argued that cryptocurrency mining is a major factor driving the energy crisis.

Daniyar Akmatov, former director of the state-owned investment protection organization, the Investment and Protection Agency, addressed the challenges in the surgical energy sector at a roundtable discussion in Bishkek, local news agency Tazabek. reported on wednesday.

The former official said crypto mining is 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 investment.

“Electricity consumption due to cryptocurrency mining has increased and this has caused an energy crisis,” Akmatov said, adding: “The som is deteriorating due to the rise in the dollar exchange rate, and Kyrgyzstan is an import-dependent country and tariffs also depend on it.”

Kyrgyz President Sadyr Japarov recently proposed raising domestic tariffs for electricity as a way to address the continuing energy shortage. Japarov said local power companies owe 129 billion doms (US $ 1.5 billion), and he claimed the country’s core power infrastructure is outdated for years due to corruption among top state officials.

Kyrgyzstan has tried to regulate activities on crypto mining in the country, but has yet to adopt concrete regulations.

Other countries also have blamed Bitcoin (BTC) is exploiting the energy shortage. Abkhazia has experienced an electrical crisis reportedly due to the 625 crib mining properties that call the small autonomous region home.