In Brief:
- NABDC Industry reported that Kazakhstan’s coin minting industry has the capability to pull in a massive $1.5 billion into the nation’s economy in a five-year period.
- As per reports, Crypto miners bring in more than $230 million into the economy of Kazakhstan each year.
According to a report by the National Association of Blockchain and Data Center Industry(NABDC), Kazakhstan’s flourishing crypto mining industry has the capability to pull in a massive $1.5 billion into the nation’s economy in a five-year period, resulting in over $300 million.
As of 2021, Kazakhstan ranks second in the world when it comes to Bitcoin mining hash rate. Consequently, the organization also added that budget revenues can reach $400 million with the opening of cryptocurrency exchanges.
The NABDC Industry comprises large companies in Kazakhstan, i.e., approximately 70% of the country’s industrial digital mining market.
The same report also suggests that legal players in the crypto mining market bring the economy of Kazakhstan from 98 billion tenge per year (almost $230 million ).
As per the local news outlet, Alan Dordzhiev, the president of the NABDC stated, “The figure of 98 billion tenge is just an economic effect from companies that are legitimately involved in mining. If we take into account the “gray” miners, then this figure can be safely multiplied by 2.”
The gray miners refer to individuals involved in crypto mining operations often with “disputed status.” Also, grey area miners consume approximately 500 MW of electricity in the country, as estimated by Dordzhiev.
In October itself, Kazakhstan’s Department of Energy proposed a draft order to curtail the amount of electricity consumed by the crypto mining industry. The report further suggests that Kazakhstan Energy Grid Operating Company (KEGOC) secures $13 billion tenge from the miners per year for the transportation of electricity through its networks and for the services of the Settlement and Financial Center for Renewable Energy Support LLP.
Of late many countries are considering natural gases for crypto mining in order to conserve energy. In fact, the Russian Govt is discussing whether to authorize oil industry players to use wasted flare gas to power crypto mining data centers.
