Opposition politician and former President of the National Bank of Georgia Roman Gotsiridze claims that crypto-mining enterprises are destroying Georgia’s energy grid, enjoying unjustified tax and energy incentives, and effectively serving the interests of the ruling party’s business clan.
“The energy sector is being destroyed by a parasitic crypto industry whose share in the country’s revenue is virtually zero, while its impact on the economy is sharply negative. Any energy-intensive industry has the right to exist if it operates under competitive conditions and generates a profit. Crypto-mining enterprises in Georgia exist solely because they are kept in sheltered, greenhouse conditions: they are completely exempt from taxes and receive electricity on preferential terms. Without these preferences, they would immediately cease to exist. They are vampires sucking the resources of the energy sector and the state budget.
Another characteristic of these enterprises is that they operate around the clock, winter and summer, placing a constant strain on the power grid. As a result, accidents and outages have become more frequent. In Georgia, they consume around 6% of all generated electricity, and if Abkhazia’s consumption is included, this figure is even higher. In total, we are talking about roughly 1 billion kilowatt-hours—more than the annual electricity consumption of Batumi.
Behind all these crypto farms are representatives of the business clan of Georgian Dream, while the largest crypto farm, located in the Gldani district, was founded by Bidzina Ivanishvili.
Cryptocurrency mining in free industrial zones must be banned immediately,” Gotsiridze wrote.
