Cryptocurrencies are becoming more popular around the world. The crypto mining industry is actively developing in the Republic of Georgia. The country, from the south Caucasus, became one of the leading crypto mining producers around the globe. Moreover, Georgia is among the top five producers.
According to the information, the International Monetary Fund is working with Georgia on improving statistics and methodologies for calculating the trade balance.
IMF’s position regarding cryptocurrency-related activities is that Georgia should become more transparent when accounting for crypto mining. The country, which is one of the market leader’s in terms of crypto mining, should pay more attention to this issue.
The organization suggested that Georgia should address this problem by including the income from the cryptocurrency-related activities. As a result, the income generated by the crypto industry will be reflected in their trade balance reports.
Crypto mining and local market
One of the biggest issues is the lack of knowledge regarding the local crypto mining industry. For example, Georgia’s income from cryptocurrency production remains unknown.
The IMF organized meetings with large crypto mining companies to discuss this issue with them. As part of the meetings, representatives from the IMF explained that when locally mined cryptocurrencies are sold to foreign companies, this can be considered as a form of export. Thus, to tackle the problems connected with transparency, they should include this information.
According to the National Bank of Georgia, the total number of digital wallets registered in the country reached 5,300 in 2018.
Last but not least, Bitfury is one of the biggest Bitcoin mining companies in the world. The Tbilisi-based company, as well as other crypto related companies, benefited from the cheap electricity generated by hydropower plants. It is no secret that cheap electricity is very important when it comes to this industry.