Kazakhstan suggests the “70/30” model to finance energy promotions through encryption mining

Kazakhstan pushes forward with plans to update its energy system through digital mining and expand the trading of encryption beyond the economic area of ​​the economic capacity center.

In the foreground Published In Kazakhstakaya Pravda, Kanysh Tuleushin, Deputy Minister of Digital Development, Innovation and Space, explained the government’s strategy to use digital mining to upgrade energy infrastructure in the country and improve efficiency. Under the proposed “70/30” model, foreign investors funded promotions to thermal power plants, with 70 % of the new power product directed to the national network and 30 % for mining operations.

Taleushin pointed out that this model reflects practices in the United States, as it helps miners in encryption in the power network balancing through excess electricity consumption during low demand periods. He believes that Kazakhstan can adopt a similar approach, as mining farms as a tool for stability and power support.

He also suggested using the associated oil gas, which is a secondary result of oil production that is often erupted or wasted, to generate electricity to mining farms. This would reduce environmental impact and create new revenue flows for oil producers.

According to Taleushin, digital mining has contributed $ 34.6 million to tax revenue over the past three years. Since 2023, Kazakhstan has registered more than 415,000 pieces of mining equipment, and issued 84 licenses, dependent on five accredited mining gatherings, as the sector continues to grow.

Besides its mining plans, Kazakhstan also studies the country’s expansion in the encryption trading regulations, which are currently limited to AIFC – a special economic zone with an independent legal framework.

The AIFC exchange trading volume of $ 324.2 million in 2023 to $ 1.4 billion in 2024. However, experts estimate that the total volume of digital assets transactions in Kazakhstan reached $ 4.1 billion in 2023, with 91.5 % that occurred outside the organization.

“… if everything is Restrictions It was raised and digital assets were allowed to circulate via Kazakhstan, and the effect may be large. The flexible rules will attract the main players, as we have seen in the United Arab Emirates. Kazakhstan may become the Central Asia Central Center, competing with Uzbekistan and Kyrgyzstan, which also adopted the market. The codification of the gray area would bring billions of Ten to the budget. For example, only 10 % tax can generate more than 190 billion tings annually (372.9 million dollars), which is enough to build dozens of schools and new hospitals from scratch.

To this end, Tuleushin suggested entering flexible coding rules outside AIFC. He said that the Ministry of Digital Development is currently working on proposals to create transparent encryption exchanges and ATMs. However, implementation requires coordination with the National Bank and the Capital Market Regulatory Agency.

In addition, Kazakhstan is currently Prepare To expand use Digital tingIt is designed to enable the full tracking of public spending. the CBDC Pilot Project has released 250 billion TENGE digital so far, using unique digital signs to track expenses.