Norway considers supporting Sweden’s call for a ban on cryptocurrency mining – Mining Bitcoin News
The Norwegian government is considering ways to limit the environmental impact of cryptocurrency mining and may support Sweden’s proposals for this, including a European ban on proof-of-work mining. The European Commission revealed that it is already working to promote the transition to a “more sustainable” agreement.
The Minister of Norway stated that it is difficult to justify the widespread use of renewable energy in the mining industry
The country’s minister in charge of local government and regional development stated that the Norwegian authorities are considering possible policy measures to deal with the environmental impact of crypto mining. As part of the review, the Norwegian government intends to study the solution recently proposed by the Swedish regulator and work towards common European rules. Minister Bjørn Arild Gram also stated in an interview with Euronews Next:
Although in the long run, encrypted mining and its underlying technology may bring some possible benefits, today it is difficult to justify the widespread use of renewable energy.
In the past few years, these two countries, as well as another Nordic country, Iceland, have become popular destinations for cryptocurrency miners. The region has abundant renewable energy resources and relatively low electricity prices. According to Eurostat data for the first half of 2021, Norway provides the cheapest electricity for non-household consumers in the European Economic Area (European Economic Area), more than 90% of its energy comes from hydropower.
Bjørn Gram’s statement was made after the directors of the Swedish Financial Services and Environmental Protection Agency Require After the country’s Bitcoin miners’ energy use has doubled this year, a proof-of-work mining ban has been implemented throughout the European Union. Officials warned: “Sweden needs the renewable energy targeted by crypto-asset producers for the climate transition of our basic services, and the increased use of miners threatens our ability to fulfill the Paris Agreement.”
“In general, we hope that our renewable energy can be used in a way that creates value and supports the transition to a climate-neutral society,” Minister Gramm explained in detail. After Oslo introduced tax breaks for data centers in 2016, Norway had a heated discussion on the use of renewable energy to power digital coin minting. His comments are part of Norway’s new Environment Minister Espen Barth Eide’s past concerns about Norway. At the expense of its own power-intensive industry, it became a “world bitcoin mining farm”.
European Commission urges crypto miners to move away from proof-of-work concept
Regional Development Minister Bjørn Gram did not provide any specific details about the regulatory policies currently being considered by the Norwegian government. But if Norway decides to follow in Sweden’s footsteps, it may hit the crypto mining business that requires a lot of energy.
At the same time, the European Commission (EC), which is responsible for enforcing encryption regulations in the EU, acknowledged that it is already encouraging the crypto mining industry to “migrate” applications from energy-intensive proof-of-work blockchains to less demanding protocols. Euronews Next revealed, for example, proof-of-stake and hybrid consensus models. A spokesperson for the executive agency told the publication that EC is working to promote “a more sustainable form of blockchain technology.”
The representative added that the committee has “ambitious emission reduction targets” and promotes the development of less energy-intensive blockchain technology by funding start-ups and directly developing public sector blockchain networks.Although the Paris climate agreement mentioned by the Swedish regulator does not prohibit cryptocurrency mining, Brussels understands things like China The official added that the matter will be discussed with EU member states.
Do you think Norway, Sweden and the European Union will restrict energy-intensive cryptocurrency mining? Share your expectations in the comments section below.
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