The International Monetary Fund (IMF) is requesting Georgia to provide better information from cryptocurrency mining activities.
Georgia is one of the countries with the largest number of cryptocurrency miners. However, they are not properly reflecting crypto mining activities on their GDP estimations.
Georgia Should Provide Better Data on Crypto Mining
According to Trend News Agency, representatives of the International Monetary Fund have been talking about the whole cryptocurrency market with crypto mining companies located in the country.
At the moment, Georgia became a Bitcoin (BTC) exporter and this should be properly registered to have a better idea how much US dollar the activity provides to the nation.
On the matter, the IMF explained:
“The IMF is working with Georgia on other matters, including on improving statistics. We are consulting on improving the methodology for calculating the foreign trade balance, and in particular, we are actively discussing the possibility of introducing accounting for cryptocurrency mining.”
This information would be very important to understand which is the impact that crypto mining activities have in a specific country and how it is possible to better regulate the market.
The IMF wants Georgia to include its Bitcoin sales on its trade balance to have a better understanding of the whole industry. As the IMF mentioned, the government should watch the industry closely and include crypto information on its GDP.
The main question that IMF representatives ask is why shouldn’t cryptocurrency mining activities be added to the foreign trade balance. The whole mining process involves the import of goods from other countries (ASIC miners) and materials that could be involved in the construction of mining facilities in the country.
One of the companies located in the country is Bitfury, which has been a very large crypto mining firm. Bitfury accounted for as much of 15% of all the Bitcoin mined in the world.
China is the country with the largest operations of cryptocurrency mining farms due to different reasons. Miners are always searching for countries with low electricity prices, with cold temperatures and with stable economic and political situations.
Bitcoin miners receive rewards for processing the transactions on the network. Miners are a very important part of the crypto ecosystem. Once they get these rewards, they have to sell some of the BTC they received in order to pay for the expenditures related to the mining operations.