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Kazakhstan is not banning mining and cryptocurrencies, here's why

Apr 09, 2018 Posted /  684 Views

Kazakhstan is not banning mining and cryptocurrencies, here's why

As FUDs has become a tool of the masterminds which they tend to use to control prices in the Crypto world. Likewise, similar FUD has aroused in the cryptocurrency market due to rumors of Kazakhstan banning the cryptocurrency mining. This uncertain rumor was pronounced without proof by Daniyar Akishev, Governor of the National Bank of Kazakhstan. Let us try to predict if the country is meaning to ban the cryptocurrency Mining or not.

Why do some people want to ban mining?

Russia is a country wherein concepts like entrepreneurship and initiating new startups was considered to be a tremendous offense. Kazakhstan before its freedom was a part of Russia for almost 80 years. Having been under Russia for so long has surely left an impact on the mindset of the people of Kazakhstan. Earlier in Russia, if anyone would try to make any profits personally, it was considered as profiteering, and the person was sent behind bars for at least seven years, and also their property was confiscated.

Their underdeveloped attitude towards Entrepreneurship and their lack of organization of financial issues also the slow pace of innovation in Kazakhstan has been the reasons for hampering the development of the nation. But the modern day Kazakhstanis are very professional as they have been educated in the Western culture.

Innovations of Kazakhstan

In today's date, almost 70% of gross domestic products of Kazakhstan is through the mineral and oil reserves that it possesses. As these resources are non-renewable, the government wants to shift their perspective to another source of income as soon as possible because one day these oil reserves will get exhausted. Also, It is doing so to prevent itself from another economic crisis. Huge amounts of money are being sanctioned for the digitization of the nation.

All their efforts are seeming to pay off as Kazakhstan has become the best e-governance country in the world, leaving behind even Russia. It is also one of the fastest growing economies in the world.

The National Bank Has No Authority to Ban Mining

According to the laws of Kazakhstan, only the Ministry of Economic Development has the rights ban crypto related concepts. Hence the statement from the governor of National Bank of Kazakhstan who says that the mining of cryptocurrencies will be banned is not viable at all. According to the pre-assumptions he might have said so because he was not sure about the technology and hence was illogically trying to ban it. The decision of the National Bank was not accepted by any of the governing body of Kazakhstan itself. Also, the electricity rate in Kazakhstan is one of the lowest in the world. It also possesses an excess amount of electricity which almost accounts for 3,500 MW. If all these access electricity is channelized towards Bitcoin mining, then the nation would generate $1 billion higher revenue every year.

Getting Rid of the Resource Curse.

The nation is also attracting many investments from all over the world. For the country's advancements, at Lisbon’s Web Summit last year, Kazakhstan presented 42 projects which attracted $1 billion worth investments. Among which some of them was the introduction of an intelligent transport system, the drive to digitize tax control, the digitization of resource extraction, etc.

Adopting Blockchain Technologies

The Prime Minister of the country seems to have a keen interest in the blockchain technology. Blockchain-based applications are being tested in the nation in various fields. Also, a Blockchain based VAT administration system is scheduled to be launched in 2019. It is also actively participating in negotiations to promote The Eurasian cryptocurrency.

The governor’s (of national bank) statement and the government's policy seems to be opposite. The president of Kazakhstan, Nursultan Nazarbayev himself proclaimed that Blockchain Technology and Bitcoins are complete innovations. “70 billion dollars of bitcoin capitalization represents an absolute growth, absolute productivity, an absolute innovation. That’s exactly what we need,” he said.

Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .

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Tags: digitization Cryptocurrency Market

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