In a significant move, President Sadyr Japarov of Kyrgyzstan has given the green light for the construction of a crypto mining farm with an estimated budget of $20 million.
The project will be powered by a Hydroelectric Power Plant, marking a notable step towards harnessing renewable energy for crypto mining in the country.
This decision comes as Kyrgyzstan seeks to address energy challenges and explore opportunities for economic growth through cryptocurrency development.
The Kyrgyzstan government plans to build the crypto mining farm utilizing the Hydroelectric Power Plant, a sustainable energy source.
This initiative aims to tap into the abundant hydroelectric resources available in the region to power the mining operations.
President Japarov’s approval on July 27 signifies the country’s commitment to exploring innovative ways to utilize renewable energy for economic advancement.
President Japarov highlighted a past energy crisis in 2010 when the Kambar-Ata-2 plant encountered significant energy losses, amounting to 6.8 billion kilowatt-hours (kWh) in Kyrgyzstan.
In response, the government has taken proactive measures by declaring a state of emergency in the energy sector, which will be effective from August 1, 2023, until December 31, 2026. The decision aims to ensure a stable and sustainable energy supply for the nation.
Kyrgyzstan’s government recognizes the potential of cryptocurrencies to boost local revenue and drive economic growth.
In March 2022, lawmakers discussed the possibility of legalizing the cryptocurrency industry, acknowledging its rapid expansion and global significance. However, clear regulations for crypto platforms have yet to be established.
Notably, one government official expressed concerns about the energy consumption associated with crypto mining, which could potentially strain the country’s resources.
The introduction of hydro-powered crypto mining is expected to alleviate such concerns while offering economic benefits to the public.
The introduction of hydro-powered crypto mining is seen as a promising solution to support the local economy. This sustainable approach to mining is anticipated to generate revenue that can be channeled back into the community, benefiting ordinary citizens.
The President’s commitment to this initiative underscores his promise to enhance economic opportunities for the people of Kyrgyzstan.