Transnistrian Authorities Hope to Win Over Crypto Miners in 2019

Transnistrian Authorities Hope to Win Over Crypto Miners in 2019

Transnistrian authorities plan to legislate an increase in the presence of crypto miners in the urecognized state by eliminating associated taxes and offering cheap electricity. In return, miners there will buy power only from the Moldovian GRES power station, which currently has an electricity overproduction problem.

Also see: As Asia Gets Blockstream Satellite Support, Bitcoin Bides Its Strength

Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts

Prime Minister of Transnistria: The Breakaway Region Needs Crypto Miners

To boost their budget prospects in 2019, Transnistria’s de facto government is looking to entice cryptocurrency miners to the region with the promise of mutually beneficial financial arrangements.

Transnistria, a breakaway region of Moldova, is only informally recognized by the nations of the world. That means administrators there have generally been forced to be creative with their budgeting, and they’re now eyeing mining as a possible new way forward.

In case of success, the overproducing Moldovian GRES power station at the heart of the authorities’ legislative pitch would see an influx of income from local and foreign miners, a dynamic that in turn would help the local budget thrive.

Transnistria is hoping miners breakaway to the breakaway region.

“We have adopted a liberal law that will stimulate mining activity on the Transnistrian territory,” Transnistria’s Prime Minister Alexander Martynov noted of the region’s crypto bid.

PM Martynov also highlighted that local authorities are not going to administrate profits from mining activity.

“This is what the law says, we have created a free economic zone and such conditions look much better than similar ones in another countries,” Martynov said.

Mo’ Miners, Mo’ Money

Though miners in the locale won’t be taxed under the new legislation, authorities are aiming their own financial windfall to come from taxing the power station.

“The more miners we have, the more Moldavian GRES generates,” Martynov said.

“This will generate large revenues for the station, hence an increase in tax payments. They suppose to go to a special gas account that officials use for financing the local budget.”

The mining pivot isn’t the first time the territory has looked to the cryptoverse.

In January 2018, Transnistria adopted a bill that allowed development of blockchain-based informational technologies. It also granted the installation and use of mining equipment on a legal basis.

Moldavian GRES, which belongs to Russia, is the biggest electricity producer in the region. The station is using free gas from Russia. Transnistrian officials currently don’t pay Russia’s Gazprom corporation for the gas and have thus accumulated $6 billion USD in associated debt to date.

Can mining perks attract more crypto miners to the region? Sound off in the comments below.


Images by Jeff Fawkes, Pixabay

Related News