Kyrgyzstan has lost half of its tax revenue from Bitcoin mining.

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Kyrgyzstan has experienced a significant decline in tax revenues from cryptocurrency mining. Despite the abundant and untapped renewable energy resources in the country, tax revenues in 2024 have halved compared to the previous year.

DECLINE IN TAX REVENUES IN KYRGYZSTAN DESPITE ENERGY ABUNDANCE

According to the latest report from the Kyrgyz Ministry of Economy and Finance, the tax revenues generated from cryptocurrency mining in the country showed a serious decline in 2024. The ministry's latest data revealed that tax revenues from mining activities this year fell to 46.6 million som (535,000 dollars). This figure is less than half of the 93.7 million som (1 million dollars) revenue recorded in 2023.

This loss of revenue contrasts with the country's rich renewable energy resources. According to reports from the International Energy Agency, more than 30% of Kyrgyzstan's total energy supply comes from hydroelectric power plants. However, the country is only able to utilize 10% of this hydroelectric potential.

This situation contrasts with successful examples of cryptocurrency mining and renewable energy use around the world. For instance, Deutsche Telekom uses excess renewable energy for Bitcoin mining at its facilities in Backnang. The company's pilot project aims to balance the effects of variable sources like wind energy on the grid. Oliver Nyderle, who describes this application as "digital monetary photosynthesis," emphasizes that Bitcoin mining is effective in regulating energy fluctuations.

In Finland, cryptocurrency mining is adding a different dimension to sustainable energy use. The heat generated from mining equipment meets the heating needs of a settlement with a population of 11,000. These examples highlight the potential of cryptocurrency mining in energy management.