Crypto mining one of the reasons for current energy crisis in Kyrgyzstan: Former official

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Crypto mining one of the reasons for current energy crisis in Kyrgyzstan: Former official

AKIPRESS.COM – Cryptocurrency mining is one of the reasons for energy crisis in Kyrgyzstan, according to Daniyar Akmatov, former director of the Investment Attraction and Protection Agency.

“Consumption of electricity due to crypto mining has increased and this has led to an energy crisis,” he said.

Akmatov added that investors are not interested in investing in energy. “Moneyback – the money that investors have to get back – takes a very long time,” he said.

The main problems in the energy sector are the devaluation of the som.

“The som is depreciating because of the rise in the dollar exchange rate, and Kyrgyzstan is an import-dependent country and tariffs also depend on it,” he said.

The standard of living of Kyrgyzstan’s population also plays role. For example, standard of life in the Czech Republic and in the States is high, the salaries are high.

Akmatov also spoke about the impossibility of attracting investments in the renewal of energy sector equipment. “There is no electricity for us to develop the real sector of the economy, it is a deadlock. A tariff increase is a natural situation,” he noted. 

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