Central and Southern Asia Explore Sustainable Alternatives Following Bitcoin Mining Boom

While the Wed3 world focuses on international heavyweights like China and the United States, Central and South Asia (CSA) boasts a thriving and diverse crypto economy. 

India and Pakistan enjoy some of the highest crypto adoption rates in the world, while cheap energy costs and regulatory clarity made Kazakhstan a Bitcoin mining hub in 2021.

As the crypto community seeks sustainable alternatives, Solana emerges as a prime candidate to support growing adoption in CSA nations.

Central Asia’s Bitcoin Mining Boom

Following the exodus of Bitcoin miners from China in 2021, Central Asian countries like Kazakhstan and Kyrgyzstan played host to huge amounts of crypto mining activity. 

Abundant in natural resources, low energy costs, and crypto-friendly laws, the area quickly evolved into a thriving hub Bitcoin mining hub. Crypto mining operations paid as little as $0.03 per kWh for electricity in Kazakhstan, making it one of the world’s most cost-effective nations for Bitcoin farms.

This led to a surge in crypto adoption rates in Central Asia, with Kazakhstan becoming the world’s second-ranked Bitcoin mining nation in 2021. At its peak in October 2021, Kazakhstan accounted for 18% of the global Bitcoin hashrate. However, Central Asia’s mining utopia couldn’t last forever. 

The rising demand for energy put a significant strain on the Central Asian power grid, causing sporadic outages as aging Soviet-era infrastructure struggled to keep up. By May 2023, Kazakhstan’s contribution to the global hashrate had dropped to as low as 4%.

A wrath of regulations have since been implemented to curb crypto mining in Kazakhstan. New mining-specific tax rates have been introduced, and crypto miners in the nation are required by law to sell 75% of their revenue via centralized exchanges.

Meanwhile, neighboring countries like Kyrgyzstan and Uzbekistan are exploring more sustainable energy alternatives, including solar and hydroelectric farms.

Is Solana a Convenient Solution?

Courtesy of its hybrid Proof-of-Stake/Proof-of-History consensus mechanism, Solana is one of the most environmentally friendly blockchains in the crypto industry. According to Solana Labs, one transaction requires less energy than a Google search. Additionally, Solana is carbon neutral, having implemented numerous carbon offsetting initiatives.

Beyond Solana’s inherent sustainability, the network also features a flourishing stablecoin ecosystem. Throughout 2024, the supply and market cap of Solana stablecoin has consistently grown, illustrating growing demand for these assets onchain.

Stablecoin adoption is crucially important in certain areas in South Asia. Chainalysis argues that surging rates of inflation have encouraged the Pakistani population to turn to crypto as a means of wealth preservation. According to the analyst's 2023 report Pakistan’s inflation has skyrocketed to 29.4%, up from the 10.6% figure recorded 5 years ago. 

Alongside economic damages caused by the COVID-19 pandemic, rampant inflation and foreign debt have already forced bankruptcy in Sri Lanka, another South Asian nation. 

Speaking with Chainalysis, Rain exchange founder Zeeshan Ahmed contends “The equities market and stock exchange have tanked. And any gains you achieve can be wiped out by inflation… Pakistani citizens are also barred from holding physical foreign currency”.

Fortunately for Pakistan’s economy, the nation’s stock market has rallied back to all-time highs since this comment. Regardless, holding a variety of stablecoins pegged to alternative fiat currencies, like the USD or the Euro, could protect citizens from local inflation. 

Kazakhstan to Host Solana Nomads Conference

Community organizations in Central Asia are helping promote Solana adoption and growth in the area. Hosted in Almaty, Kazakhstan, in October, Solana Nomads is the largest Solana event in Central Asia.

Sponsored by Step Finance, the event aims to connect over 3,000 developers in the region and onboard them into Solana’s growing ecosystem. Solana Nomads will also play host to a hackathon, offering over $1,000 USD in prizes.

Disclaimer: SolanaFloor is owned and operated by Step Finance

Solana is a sustainable and energy-efficient crypto ecosystem that provides CSA communities with greater flexibility in wealth management. The first event of its kind in Central Asia, Solana Nomads sets a new precedent for progressive adoption and growth in the region.

Read More on SolanaFloor

Solana stands firm during a challenging week for crypto:

Solana Defies Market-Wide Trend, Leads Weekly Inflows

Learn More About Stablecoins