Cryptocurrency Miners Blamed for Energy Crisis in Abkhazia

Abkhazia, a region of Georgia outside central government control, is experiencing a severe energy collapse. Power is now supplied only at night (9 PM to 7 AM) and briefly twice during the day for just over 2 hours.

The region mainly relies on electricity from Russia. In November, after the pro-Russian “president” was ousted, Russia stopped funding local authorities and raised energy prices. With no budget to cover the new rates, the grid collapsed.

Instead of addressing the political causes, authorities blame cryptocurrency miners for the power shortage. On December 9, they even asked internet providers to cut off the entire region to stop mining - a request that was refused.

Crypto is an easy scapegoat. Few realize traditional banking consumes similar energy while offering less financial options - especially in regions like Abkhazia, where traditional banking is disconnected from the outside world. For many residents, crypto is the only way to access international financial flows. We at rabbit.io know this firsthand.

Maybe the power cuts should target industries less crucial to life in an unrecognized state.

Crypto will endure, even if mining stops in one region. Without power, residents lose access to crypto. But, when the lights come back on, crypto will be ready to help Abkhazians reconnect to global finance.