Kazakhstan is looking for a way to plug the hole in its electricity-generation capacity after Bitcoin (BTC) miners moved in from China earlier this year.
The country has seen an 8% increase in domestic electricity consumption so far in 2021, mostly attributed to BTC miners.
However, while an economic windfall from the industry is motivating officials to sustain (and tax) it, the issue of electricity shortages has begun to ruffle feathers.
The good news is Kazakhstan has time to react before it ends up experiencing brown outs like Iran did earlier this year, forcing the country to suspend crypto mining for the summer.
Because of this, President Kassym-Jomart Kemelevich Tokayev has spoken to the Electricity Grid Operating Company and discussed the development of a nuclear power plant that will help with the country’s energy needs in light of growing demand from BTC miners.
“Looking into the future, we will have to make an unpopular decision about the construction of a nuclear power plant”, Tokayev explained.
While Tokayev did not say that the plant was motivated by the need to sustain the crypto industry per se, he surely wants to keep the industry intact and growing.
Kazakhstan values crypto mining operations as they generate revenue for the country through taxation. In fact, the country is earning $1.58bn thanks to its crypto mining tax presently.
Because of this, Kazakhstan’s authorities also have an incentive to clamp down on unregistered miners who contribute to increased consumption, but try to skirt paying taxes.
In the meantime, you can explore various cryptocurrencies for recreational purposes at places such as Bitcasino, 1xBit or FortuneJack.