Uzbekistan Ministers Want 3-times Increment in Power Rate for Crypto Miners

Ibiam Wayas by Ibiam Wayas - 02:32 PM Oct 01, 2019
uzbekistan-ministers-want-3-times-increment-in-power-rate-for-crypto-miners

The Republic of Uzbekistan Minister of Energy filed documents to heighten the power rate charge to crypto miners. Following the comments on the development, the move could hinder the performance of cryptos in the country.

Per the filing published on September 27, the Ministers want the energy rate raised 3.0 times for crypto miners. That is, three times higher than the standard 3.5 cents per kWh charge for general consumers in Uzbekistan.

Following the development, crypto miners in the country were caught all of a sudden, since no specific issue broke out. However, the Ministers noted it was to ensure effective power consumption.

The reason is "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 amendment applies to every crypto miners of all sizes. It also includes individuals or entities conducting activities related to crypto-assets, regardless of their power capacity.

Conflicting Statements against the Bill


Upon this new price level, many people made several statements blasting the proposal. Saying, crypto miners and blockchain - underlying crypto technology should be maintained instead.

Others said the proposal possibly results in the chasing of crypto miners away to the favorable country to maximize returns.

According to IT entrepreneur, Salvar Rasulev:

"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."

While commenting on the development, Assalomu Alaikum voted for the support of blockchain and crypto miners in the country. He added

"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."

 

About The Author
Ibiam Wayas

Ibiam WayasIbiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.

Comments

Share On Social Media!

Enter Shared Link

Enter Shared Link

Enter Shared Link

Enter Shared Link

Enter Shared Link