Uzbekistan Ministers Wants 3x Energy Rate Increment for Crypto Miners

The Ministry of Energy in Uzbekistan has proposed a new bill to increase energy rate for cryptocurrency miners, a move that could stunt the general growth cryptos and blockchain in the country.

According to a filing published on September 27, the Ministers wants to increase to the electricity consumption rate to 3.0 times higher than the 3.5 cents per kWh regular price designated for general consumers in the country.

In a section regarding the reason for the sudden decision to increase energy prices for crypto miners, the Ministers noted that the move is designed “to stimulate power saving, raise the effectiveness of power consumption in industries and the non-commercial sector, and to endorse the rational use of electricity.” 

The new 3.0 price level would apply to cryptocurrency mining business of all sizes as well as consumers conducting activities related to crypto-assets, irrespective of the power capacity involved.

Going with the amendment which is open for public opinion until October 12, a lot of people made conflicting statements, saying mining and blockchain, in general, should instead be maintained, as the proposal could result in driving miners away to locations with more favorable prices.

Referencing a one time increment on the Republic of Belarus GDP, owning to cryptocurrency and blockchain industry in the country, Assalomu Alaikum, a commenter noted that cryptos activities in Uzbekistan could also do the same for the country’s GDP.

While he also proposed for support of blockchain infrastructure in our country, Alaikum said:

“The thoughtless increase in the cost of electricity by three times (and where did this figure come from?) Will not only stop the development of the blockchain industry in the country, it can completely kill it – because the country will lose industrial and private mining capacities that support the network.”

An IT entrepreneur, Salvar Rasulev, added:

“Mining uses a lot of electricity but brings much more profit to Uzbekistan … Instead of supporting a business that would allow Uzbekistan to get hundreds of million dollars in export, which our president and our economy is demanding, you’re shutting down this opportunity and handing it over to other countries instead.”

In a similar development, Coinfomania reported earlier this month that authorities plan to drive away digital currency mining firms from Inner Mongolia, an autonomous region in China.

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