Swedish supervisory authorities are calling for the EU ban from crypto mining, energy company defends industry-mining Bitcoin messages
Swedish supervisory authorities are calling for the EU ban from crypto mining, energy company defends industry-mining Bitcoin messages
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alarmed by the increasing energy requirement of the cryptocurrency mining, Sweden's financial and environmental authorities recently proposed an EU-wide ban on occupation of work. The Swedish civil servants believe that this would promote a step towards more energy -efficient extraction of Bitcoin and at the same time support the transition to climate neutrality in Sweden and Europe. However, a state energy supply company warns that restrictions could have a negative impact on global CO2 emissions.
expensive Bitcoin creates more emissions, say Swedish authorities
The two officers recently requested a ban on the energy -intensive degree of digital currencies throughout the European Union, listing various concerns, including the migration of miners to other goals according to Chinas take part . In the Nordic region, its appetite for renewable energies could undermine the transition to climate neutrality and the efforts to achieve the goals of the Paris Agreement.
The heads of government cite various estimates that highlight the electricity-hungry character of the crypto mining, such as that Bitcoin and Ethereum together consume about twice as much electricity as Sweden or the claim that a medium-sized electrical car with the 1.8 million kilometers can be burned energy to shape a single Bitcoin. They continue to point out:
Our conclusion is that political measures are necessary to address the damage caused by the proof-of-work mining method. It is important that both Sweden and the EU can use our renewable energies where they bring the greatest benefit to society as a whole.
Thedéen and Risinger believe that governments have several political options to tackle the problem. "For example, Sweden and other countries could introduce a tax on the energy-intensive production of Bitcoin. Another option is to communicate broadly via the climate problems in connection with crypto-assets, in the hope that both producers and investors require a change to mining methods that require less energy," they continue.
Since the demand for crypto-assets continues to grow quickly, the Swedish officials fear that none of these steps would adequately limit the damage caused by the environment. "The emissions have to stop here and now and renewable energies have to be used for the climate -loving vital services."
The heads of the Swedish regulatory authorities have asked the EU to consider a flat-rate ban on work proof mining. They insist that other methods can reduce energy consumption by over 99%. The directors want Sweden to stop the construction of new facilities in which energy -intensive coin forms. They also propose to prohibit companies and investment in crypto-assets that were dismantled with a proof-of-work process in order to advertise themselves and their activities as sustainable.
Such steps could encourage crypto miners to move to other countries and still increase global CO2 emissions, the authors of the proposal have added. Nevertheless, they believe that Sweden and the EU should be an example for other countries and regions. Thedéen and Risinger emphasize:
A ban on the proof-of-work mining method within the EU could be an important first step on the way to the more use of energy-efficient crypto mining methods. It would also mean that our renewable energies are used as efficiently as possible to support the transition to climate neutrality.
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In the meantime, the state power generation company of the state of Vattenfall has defended the mining of cryptocurrencies. It sees Bitcoin extraction as an industrial activity that can actually help electricity producers to master some of the challenges that they face. Henrik Juhlin, head of the Physical Power Management area at Vattenfall, told the public service SVT that mining had the potential to compensate for the loads in power nets. This is the case when the power supply fluctuates and sometimes exceeds demand. This applies in particular to countries such as Sweden who use increasingly renewable energy sources. Wind and solar power generation depend on factors that escape human control, and the consumption of crypto farms can play the role of a buffer in times of excess of available electricity. Juhlin also warned that the ban on crypto mining in the EU could actually increase CO2 emissions worldwide because industry could shift to regions that rely on fossil fuels such as coal. Do you believe that Sweden's proposal for an EU ban from proof-of-work-crypto mining will find support from other Member States? Share your thoughts on this topic in the comments below. Bedy verification : Shutterstock, Pixabay, Wiki Commons