Abkhazia, an autonomous region within the borders of Georgia, has been suffering drastically in recent times from a shortage of energy supplies. Specialists have stated that the country is on the verge of a complete energy crisis, reported Jam News. As the economy and population of this self-styled republic grows, an energy crisis could prove dangerous. The government of Abkhazia blames the low energy levels on a spike of unregulated crypto-mining in the region.
According to Jam News, the country had banned crypto-mining a while ago, but the implementation has proved ineffective. Abkhazia is thus looking to legalise the practice in a bid to stop the excessive use of the country’s dwindling energy sources. Cointelegraph reported that the legalisation of crypto-mining would lead to greater transparency between all stakeholders. This in turn may curb the adverse effects brought on by the energy-heavy practice of crypto-mining. A neighbouring nation of Abkhazia, Mongolia, has also seen an upsurge of crypto-mining in the region. The Inner Mongolia region of China has been looking to reduce subsidies on electricity to curb crypto-mining.
Cointelegraph previously reported that Abkhazia witnessed high amounts of crypto-mining hardware brought into the country despite its illegality. Although Abkhazia prohibits crypto-mining, it allows the importing of mining hardware. Government officials claim that the allowance of importing crypto-mining hardware allows them to better track and monitor illicit miners.
Crypto-mining is the process of “mining” cryptocurrencies such as Bitcoin and Ethereum using special computers and hardware. The practice relies heavily on a high and stable flow of electricity. Hence, it flourishes in Mongolia, where electricity is heavily subsidised by the state.