Kyrgyzstan's President claims that crypto mining will help to avoid energy losses.
In an exciting development in Central Asia's cryptocurrency industry, Kyrgyzstan's President Sadyr Japarov has reportedly approved the establishment of a hydroelectric-powered crypto mining farm.
According to the country's official news agency, Kabar, the developers will receive up to $20 million in funding from the state to set up a mining firm at the Kambar-Ata-2 Hydro Power Plant.
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Algorand? ALGO Coin Explained With Animations
President Japarov believes that the mining farm would efficiently utilize the power generated by the plant that otherwise goes wasted.
The President revealed that since the power plant's inception in 2010, around 6.8 billion kilowatt-hours (kWh) of energy were lost due to non-usage. He argued:
As soon as the mining farm starts working, the earned money will go to the power engineers or, to be more precise, to the ordinary people. Each tyiyn, every kWh will be under the control of power engineers. Everything will be automated and under our control.
In the report, Japarov clarified that crypto mining would receive the highest available tariff in Kyrgyzstan, roughly equating to 5 Kyrgyzstani soms ($0.057) per kW. However, as of now, the Kyrgyz government's press office has not commented on these developments.
Interestingly, this comes in contrast to recent energy-related announcements. On July 24th, a state of emergency was declared in Kyrgyzstan's energy sector. The situation is blamed on climatic issues, decreased water inflow into the Naryn River basin, and an inadequate generating capacity to meet the mounting energy consumption.
The state of emergency is set to begin on August 1st and end on December 31st, 2026.
Despite the nation's existing energy challenges, Kyrgyzstan's President has enthusiastically embraced hydroelectric-powered crypto mining. This initiative underscores the country's efforts to harness the rapid growth of the cryptocurrency industry while addressing energy inefficiencies. This bold step might significantly influence the nation's economic trajectory and position in the global crypto-mining map.
