The EU is being called upon to ban the extraction of Bitcoin altogether – in this case, the Swedish authorities


The Swedish Financial Supervisory Authority Finansinspektionen and the environmental authority Naturvårdsverket requirethat the extraction of proof-of-work cryptocurrencies such as bitcoin would be banned in the EU.

A joint petition from the authorities describes how the most common method of extracting cryptocurrencies requires huge amounts of electricity and at the same time produces high CO2 emissions, which makes it more difficult to meet climate targets as mining continues to increase in the Nordic countries.

Agencies consider that the societal benefits of cryptocurrencies are questionable and problematic due to, among other things, the risks to consumers. In addition, cryptocurrency is used for criminal purposes such as money laundering, terrorist financing and extortion.

It is estimated that the two largest cryptocurrencies, Bitcoin and ether, consume twice as much electricity a year as the Swedish state as a whole. Mining produces huge amounts of carbon dioxide because it is done in countries where the price of energy is low and electricity is produced on a large scale with fossil fuels. In addition, as the value of bitcoin has risen, the operation of old power plants has continued due to mining.

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Finansinspektionen and Naturvårdsverket believe that allowing large-scale mining in Sweden will prevent the country from meeting its emissions targets. The authorities want the renewable energy produced in the country to be used in the best possible way for society.

There are three requirements for agencies. They want proof-of-work mining to be banned in the EU. According to the agencies, mining can be done in other ways and reduce the required energy consumption by 99.95 percent. In anticipation of the EU ban, Sweden said the agencies should prevent an increase in mining in the country, and thirdly, the agencies insist that companies trading in proof-of-work mined currencies cannot describe themselves or their activities as sustainable.

Through these actions, the authorities hope that Sweden will set an example for the EU and other countries to promote more environmentally friendly mining.


Source: Tivi by www.tivi.fi.

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