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- The Finance Minister of Norway, Trygve Slagsvold Vedum, has requested the government to abolish its crypto program.
- The crypto program permits domestic bitcoin miners to give a lowered rate on electricity.
According to his point of view, the existing market conditions and the continuing energy crisis in Europe are the main reasons for this change.
In 2016, the government of Norway proposed some energy benefits for data centers as well as crypto miners by allowing them to give lowered rates for electricity as compared to normal consumers.
In line with Vedum’s viewpoint, the macroeconomic scene has excessively transformed in the last six years, and that needs some transformation:
“We are in an entirely different condition in the energy market now than when the lowered rate for data centers was proposed in 2016. In several places, the supply of power is under pressure, and as a result, the prices inflate.
Meanwhile, we see growth with the inflated extraction of crypto in Norway. We need this potential of the community. The government will consequently cease the scheme.”
The Minister further declared that eliminating the program would produce extra revenue of NOK 150 million for the economy of the country.
In the current situation, the electricity market of Europe is under major pressure because of Russia’s restricted energy supplies. One more factor for worsening the condition is COVID-19. A number of firms cut off their power demands between 2020 and 2022. Although, electricity producers could not manage with the revived demand in the last few months, which resulted in increased prices.
The country’s green status
Norway has newly transformed into an attractive place for bitcoin miners. The country holds almost 0.7% of the hash rate all over the world, which acknowledging its comparatively small population, is still an important figure.
It is noteworthy that the country has a completely green focus. A small portion of its power is generated by the wind; at the same time, 88% comes from hydropower, as the wet climate and mountainous terrain trigger this.
A few days ago, the local mining firm, KryptovaultAS, promised to dislocate its functions north of the Artic circle because of the vast water sources in that region. Similar to many of its Norwegian rivals, the company generates about completely with renewable energy.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
