Abkhazia, a de facto state within the South Caucasus, continues to face an ongoing energy crisis. The head of the region’s national energy provider recently blamed cryptocurrency mining activity for the issues.
In line with the native reporting media ‘Jam News’, the government’s year-old ban on cryptocurrency mining has not been respected nor enforced by the native authorities, with miners still taking advantage of the area’s low electricity costs.
The director of operational and technological management of Chernomorenergo, ‘Ruslan Kvarchia’, Abkhazia’s official energy company, said:
“Total capacity of the mining equipment operating within the republic is over 40 – 45 megawatts. This capacity, subject to round-the-clock consumption throughout the year, is capable of consuming about 400 Mln kw per hour, which is the majority of the projected shortage of power within Abkhazia. The projected deficit for the remaining months of this year may amount to 704 Mln kw per hour.”
However, rather than further tightening the screws on cryptocurrency miners, the native officials are thinking of a special solution now.
Authorities are considering lifting the ban & permitting all cryptocurrency mining activities across the region. While allowing miners to work within the day could, consistent with the govt, improve communication between all parties involved: energy providers, miners, and therefore the native regulatory authorities.
The government believes that repealing the ban will leave closer supervision of mining facilities and thus offer, better management over the electricity supply.
Abkhazia has witnessed a surge within cryptocurrency mining activities in 2020, despite cryptocurrency-related activities being illegal since 2018. Users have reported that mining hardware worth over $589k has crossed the nation’s border over the past 6-months.