Norway Considers Supporting Sweden’s Proposed Crypto Mining Ban

| November 25, 2021 | 0 Comments

Bitcoin mining

Norway may soon follow Sweden in calling for European ban on cryptocurrency mining.  The Norwegian government is considering ways to curb the environmental impact of crypto mining including the Swedish proposal of putting an end to proof-of-work mining. 

According to the European Commission, it is currently working on a transition towards “more sustainable” protocols.  Norway Minister Bjorn Arild Gram said the extensive use of renewable energy for crypto mining is difficult to justify. 

Norwegian authorities are going over possibly policies to cope with the effects of cryptocurrency mining on the environment.  As part of the government’s review, authorities are looking for solutions like the ones proposed by their Swedish counterparts under European policy. 

Gram also told Euroews Next that although cryptocurrency mining and blockchain technology will yield benefits in the long run, it may be difficult to justify the “extensive use of renewable energy.”

Since China’s crackdown on cryptocurrency miners, Norway, Sweden and Iceland have become popular destinations for crypto miners.  The Nordic countries are known for its abundance in renewable energy and low cost of electricity.  Based on recent Eurostat data, Norway has the cheapest electricity for consumers outside of households. About 90% of renewable energy comes from hydroelectric power. 

Swedish officials have previously warned about the increased use of renewable energy by crypto miners as threatening their country’s ability to meet the Paris Agreement.  Gram explained that renewable energy should be used in a way that creates value and “supports the transition to a climate neutral society.”  

Although Minister Gram did not provide specific details for the proposed regulations, it may be a step towards a crackdown on crypto mining operations in the future. The European Commission has been encouraging the crypto mining industry to move applications from proof-of-work to proof-of-stake or other hybrid consensus models.

Although there is no policy in the Paris Climate Agreement regarding the ban of crypto mining, authorities are aware of recent developments in China.  

 

Reissa Su

Writer

Reissa covers latest news for Revolution Crypto.

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