Key Takeaways
- The Association explained that the country could generate revenue worth 5 billion dollars from crypto mining in the coming five years.
- The Association drew up a recommendation on a possible way of preventing power shortage in the Country.
- The Association made known its readiness to help the government in combating illegal crypto mining in the country.
According to Forbes magazine, the Association's President, Alan Dorjiyev, data centers get around $310 million per year for their services, of which $200 million is spent on procuring electricity from the government.
To avoid potential power shortages in the nation, the organization has developed proposals for possible solutions to the power shortage problem. According to the association's official, reducing crypto mining energy use by more than 35% would preserve the country's electricity supplies from potential power outages. The Association has said that it is willing to provide its support to the battle against illicit cryptocurrency mining in the country.
The Association developed the proposals in response to the country's energy ministry's recent proposed legislation on crypto mining and energy use, which prompted discussion among the crypto mining community.
Crypto mining enables Kazakhstan, which is endowed with abundant energy, to profit from the energy generated in the nation. This comes as one mining industry expert expects that the society will become a net positive for the global energy sectors in the future.
Related: Kazakhstan Proposes a 15% Tax on Bitcoin Miners to Combat COVID-19
Kazakhstan is a major producer of fossil fuels, including crude oil, coal, and natural gas. Around three years ago, the nation generated enough energy to meet more than double the country's energy needs, amounting to 178 million tonnes of oil. According to the International Energy Agency, coal accounts for almost half of the country's energy mix, with oil and natural gas accounting for the remaining 25%.
What are your thoughts on this as a potential source of additional cash for Kazakhstan's government?
