Swedish authorities propose a moratorium on crypto mining in order to comply with climate requirements
Two of Sweden’s director generals have shared their views on cryptocurrency mining in the country and the actions that should be done going forward on the contentious issue.
As Eric Wall first reported on Twitter, the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency recently published an article in which they conclude that if Proof-of-Work cryptocurrency mining is permitted in Sweden, the country will run out of renewable energy and jeopardize its chances of meeting its climate obligations under the Paris Agreement.
Officials, in particular, emphasized the following in the article: “If we allow widespread crypto-asset mining in Sweden, there is a possibility that the renewable energy available to us will be inadequate to meet the necessary climate transition.”
It’s worth noting that the most common procedure for creating crypto-assets uses energy but also creates CO2. As a result, crypto-asset manufacturers are keen to increase their reliance on renewable energy, and their presence in the Nordic region continues to rise.
“Cambridge University believes that it is already feasible to drive a mid-size electric vehicle 1.8 million kilometers using the same amount of energy required to produce a single bitcoin. This is the equivalent of forty-four complete circumnavigations of the planet. Each day, 900 Bitcoins are mined, which is an inefficient use of our renewable energy.”
According to their conclusions, Sweden needs the renewable energy sought by crypto-asset manufacturers to transition to a low-carbon future. Increased use by miners, on the other hand, jeopardizes the country’s ability to comply with the Paris Agreement. As a result, the two authorities believe that mining crypto-assets, which they believe use a lot of energy, should be prohibited.
“A prohibition on proof-of-work mining in the EU might be a significant first step toward a worldwide shift toward more energy-efficient crypto mining technologies. Additionally, it would imply that our renewable energy is used as effectively as possible to aid in the transition to climate neutrality.”
Notably, environmentalists have expressed concern about the carbon footprint associated with Bitcoin mining. Following the asset’s April ascent to a new all-time high, the debate about energy use gathered speed, adding to the asset’s drop in value.
Bitcoin mining uses just 0.38 percent of the world’s wasted energy, according to research by the Bitcoin Mining Council (BMC). The study sheds light on Bitcoin mining’s energy consumption months after the cryptocurrency was lambasted for its carbon footprint.
Also Read: Mayor Eric Adams Of New York City Will Receive His First Three Paychecks In Bitcoin
Wallets