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Authorities in Sweden are calling out the European Union to prohibit bitcoin mining. Citing the huge amounts of energy requisites to mine the said cryptocurrency, the country’s regulators have pitched an EU-wide prohibition of such activity.
Both of Sweden’s environmental and financial regulators have put up a proposal for the above-mentioned ban on proof-of-work coin minting. Further, these officials believe that this could stir up a move to more energy-efficient mining of BTC and at the same time contribute to the transition towards climate neutrality in both Europe and Sweden.
Bitcoin/crypto Ban
The proposal came from Björn Risinger and Erik Thedéen, both director generals in Sweden’s Environmental Protection Agency and Financial Supervisory Authority. As mentioned, the two cited several concerns as one of them being the migration of crypto miners to other locations after the government of China imposed a clampdown on it. Additionally, within the Nordic region, their partiality towards renewable power is likely to compromise the transition heading to climate neutrality including the efforts in meeting the goals set within the Paris Agreement.
Various estimates
Both Risinger and Thedéen have made various estimates pointing out the power-hungry character of cryptocurrency mining, especially with bitcoin and ethereum. The officials stated that the two digital currencies are utilizing twice as much electricity as their country is using. Further, they even claimed that the amount of power burnt in minting one bitcoin is equivalent to the amount of energy to drive a mid-sized electric car for about 1.8 million kilometers.
Further, they conclude that it is a requisite to have policy measures to formally tackle the dangers caused by bitcoin’s and other currency’s proof-of-work method. They went on to say that it is essential for both the European Union and Sweden can tap their renewable energy as it gives the best benefit for the entirety of the society.
The two officials also highlighted that a so-called blanket ban on crypto especially bitcoin within EU could be an essential first step in a global gesture towards a greater utilization of more mining methods that are energy-efficiency. They also stated that such a move would also translate in their renewable energy being used as “efficiently as possible.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
