Swedish authorities proposal to restrict crypto mining

Due to increasing environmental health issues, Swedish authorities may bring restrictions on the crypto mining operations. 

After the ban of crypto-related operations by the Chinese authorities, other countries’ companies got an opportunity to generate revenue through bitcoin mining. The high-level impact can be seen in the United States. In the US, there are huge numbers of bitcoin miners. And also other countries’ firms are taking advantage of it. But increasing crypto mining operations are now big problem because of the high consumption of electricity.

 Eric Wall, Director generals of the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency, shared the raised issues based on a published article on crypto mining operations, which is a big concern over the health of the environment. 

According to Eric, as per raised concerns, European Union will start its investigation on the Proof-of-work based crypto mining operations and they will halt it. 

However, a total ban is not part of the proposal on crypto mining. There are suggested ways to sustain more than 99% of crypto mining operations on sustainable energy with the same functional ability.

According to the article, read 

“If we were to allow extensive mining of crypto-assets in Sweden, there is a risk that the renewable energy available to us will be insufficient to cover the required climate transition that we need to make.”

The article also asserted that crypto mining is an important part but the emission of carbon dioxide is the more important part, so the use of sustainable energy is a necessary need. Further the elaborated with practical Energy consumption example 

“Based on estimates from Cambridge University, it is currently possible to drive a mid-size electric car 1.8 million kilometres using the same energy it takes to mine one single bitcoin. This is the equivalent of forty-four laps around the globe. 900 Bitcoins are mined every day, and this is not a reasonable use of our renewable energy.”

To reach the Paris agreement, authorities fail with the crypto mining operations based on high energy consumption. So now authorities on both sides may consider banning. 

“A ban on the proof of work mining method within the EU could be an important first step in a global move towards greater use of more energy-efficient crypto mining methods. It would also mean that our renewable energy is used as efficiently as possible to support the transition towards climate neutrality.”

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