Kyrgyzstan may soon become the next country to build a state Bitcoin reserve. Parliament in Bishkek has approved the creation of a public entity that will mine Bitcoin using surplus hydroelectric power.
Crypto Surpasses the Securities Market
The role of cryptocurrencies in the economy has grown at record speed. In 2024, the turnover of crypto exchanges and exchangers reached 587.3 billion KGS, almost two and a half times more than the entire securities market (226.8 billion KGS).
Back in 2022, the sector was almost invisible, with a turnover of just 5.2 billion KGS. Today, it has become a central growth engine for Kyrgyzstan’s financial system.
A New Source of Tax Revenue
The state is also profiting. In 2024, the industry generated 227 million KGS in tax revenues. Contributions came not only from licensed exchanges but also from 11 officially registered mining companies.
Hydropower for Bitcoin
According to the Minister of Economy, the new mining projects will rely on small hydro plants rather than the national grid. Currently, Kyrgyzstan uses only about 10% of its hydroelectric potential — leaving massive room for expansion and energy-backed Bitcoin mining.
Central Asia Turns to Bitcoin
Kyrgyzstan is following a regional trend. Kazakhstan recently announced the creation of a national Bitcoin reserve, while Russia is also exploring strategies to use cryptocurrencies as part of its financial reserves.
Meanwhile, the United States already controls about 35% of global Bitcoin mining capacity, showing how competitive the race for digital assets has become.
👉 With cheap energy and a booming crypto sector, Kyrgyzstan is now positioned to become the next country to officially add Bitcoin to its state reserves.
Sources:
- The cryptocurrency sector in Kyrgyzstan has surpassed the traditional securities market in terms of turnover.
- Why Central Asian Nations Are Turning to Bitcoin