Sweden Calls for EU-wide Ban on Bitcoin Mining

Regulators in Sweden say that mining Bitcoin and other cryptocurrencies on the Proof-of-Work algorithm would hinder Sweden and the European Union from meeting the Парижское соглашение по изменению климата.

In a joint statement, the head of the Financial Supervisory Authority, Erik Tedén, and the head of the Environmental Protection Agency, Björn Raizinger, called for a ban on mining digital assets using this energy-intensive method.

Officials noted that at current market values, mining cryptocurrencies could emit up to 120 million tonnes of CO2 per year. That is equivalent to the carbon footprint of 100 million round-trip flights between Sweden and Thailand.

Because of the availability and low prices of renewable energy in the Nordic region, many industry players are considering relocating to the region.

Since April, electricity consumption for mining in Sweden has surged by hundreds of percent, and by August the figure reached 1 TWh. They argue that using renewable energy for mining cryptocurrencies is unwise.

«This energy is urgently needed for the development of fossil-fuel-free steel, large-scale battery production and the electrification of our transport sector», they said.

Tedén and Raizinger cited Cambridge University data. According to it, the electricity used to mine one Bitcoin is enough to drive a mid-sized electric car 1.8 million kilometres.

«There are other mining methods that can also be used for Bitcoin and Ethereum, which, according to estimates, reduce energy consumption by 99.95% while preserving functionality»

Earlier, American billionaire and environmental advocate Tom Steyer called Bitcoin an environmental threat due to “enormous consumption” of electricity.

Ark Invest founder Cathie Wood, for her part, is confident, that the first cryptocurrency will, over time, become greener than the traditional financial services sector.