Sweden Needs Power for More Useful Things Than Bitcoin Mining, Energy Minister Says – Mining Bitcoin News

Bybit
Sweden Needs Power for More Useful Things Than Bitcoin Mining, Energy Minister Says – Mining Bitcoin News
Ledger


The country’s energy minister said the Swedish government may reject crypto mining amid concerns over an expected increase in electricity demand. Europe’s leading Swedish bitcoin minting industry is likely to soon lose the preferential treatment it has been taking advantage of for a long time, according to a media report.

Crypto miners may find it harder to access cheap green energy in Sweden

Amid forecasts of growing energy demand in other industries, Sweden may change its stance on cryptocurrency mining. In a recent interview, Energy Minister Khashayar Farmanbar said the Swedish economy was “moving from a period of management to extreme expansion, with our entire manufacturing sector looking to electrify”. Bloomberg quoted the official as saying:

Honestly, we need energy to produce something more useful than Bitcoin.

With its water reservoirs and wind farms providing clean and low-cost electricity, Sweden has attracted many bitcoin miners, and its coin minting industry has become one of the largest in Europe. However, the Stockholm government has commissioned the Swedish Energy Agency to estimate energy usage in the digital space, especially crypto mining, amid concerns about increased electricity consumption.

The location of mining farms is largely determined by the availability of cheap electricity, and the profits of their operators are largely determined by the price of crypto assets. The outcome of an orderly review could worsen the first of these conditions, while the downturn in the crypto market has affected the other.

okex

Farmanbar did not say what steps the government might take to limit mining, but two options have been discussed. One is to change the order in which electricity users access the network, prioritizing those users who may bring more benefits to society, such as creating a large number of jobs.

Another possible move is to limit the scope of tax incentives currently enjoyed by all data centers. The argument is that the intended purpose of this incentive is to attract multinationals such as Microsoft and Facebook, rather than crypto-miners, as Erik Thornstrom, a senior advisor at industry group Sweden, elaborates:

I think existing tax breaks should be focused first on the activities they intend to attract. Cryptocurrency mining is more questionable.

Officials recommend learning more about innovative technologies like crypto mining

Sukesh Kumar Tedla, president of the Swedish Blockchain Association, commented: “I think that many public officials who have strong views on cryptocurrencies and blockchain, including the energy minister, need further education and awareness.” He acknowledged that crypto mining uses a lot of energy, but points to many other innovative technologies as well.

The latest episode of the debate over the future of bitcoin mining in Sweden comes after the heads of Sweden’s financial services and environmental protection agency last year proposed a ban on energy-intensive proof-of-work (PoW) mining in the European Union, amid a severe increase in the industry’s energy consumption. background.

Their call to remove the alleged threat to climate transition goals has been backed by officials from other EU countries, including Germany, Spain and Norway. However, a proposal to ban PoW mining was removed from the draft regulation scheme for the Integrated Market for Crypto Assets (MiCA) agreed by the EU agency. The controversial text amounts to a ban on Bitcoin, according to the continent’s crypto community.

For example, companies looking to benefit from curbing crypto mining include companies in the Swedish steel industry. For example, the SSAB plans to organize fossil-fuel-free production and insist that grid operators should prioritize industrial projects similar to their own, rather than connecting customers on a first-come, first-served basis as they currently do. “We can reduce Sweden’s CO2 emissions by 10 percent,” insists SSAB energy director Tomas Hirsch.

“Is Bitcoin something we should be using electricity for, for example, when we can use it to make fossil-free steel? In a free market, this is not trivial,” commented Minister Farmanbar, noting that in the face of expected bottleneck, Sweden should consider whether to use its energy in the best possible way. His statement comes as politicians like him face increasing pressure to tackle global warming.

tags in this story

bitcoin, bitcoin farm, bitcoin mining, climate, consumption, crypto, crypto farm, crypto miner, crypto mining, cryptocurrency, cryptocurrency, cryptocurrency mining, electricity, energy, energy minister, environment, miner, mining, mining farm, power, limit, sweden, swedish, usage

Do you think Sweden will restrict cryptocurrency mining? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons, Alexandros Michailidis

More hot news

in case you missed it

Blockcard

Be the first to comment

Leave a Reply

Your email address will not be published.


*