Sweden’s central bank urges ban on Bitcoin for environmental reasons

Riksbank published a report “Cryptocurrencies and Their Impact on Financial Stability”, in which it shared the results of its own study of mining under the Proof-of-Work consensus algorithm.

Energiåtgången för bland annat #Bitcoin har ökat kraftigt de senaste åren. Centre for Alternative Finance vid Cambridge University uppskattar att Bitcoin-nätverket har en högre energikonsumtion än till exempel Norge. 🧵 1/4 #Krypto #BTC #Riksbanken

— Sveriges riksbank (@riksbanken) June 10, 2022

The Swedish central bank called for a ban on Bitcoin and other Proof-of-Work-based cryptocurrencies due to environmental impact. According to the document, energy consumption of this mining method is equivalent to that of 200,000 households.

“The central bank has no right to tell people what to do with their electricity. If they really cared about the environment, they would shut down their operations tomorrow morning”, said Cointelegraph Bitcoin maximalist Knut Svanholm.

In response to the Riksbank’s tweet, he posted a video about Bitcoin mining, in which it is asserted that the energy used to mine the first cryptocurrency “is not wasted”.

Here is a short video I, and some friends, have made on the topic: https://t.co/uz4p5Ap7EC

— knutsvanholm.com ∞/21M (@knutsvanholm) June 10, 2022

BTCX founder Christian Ander also criticised the Riksbank’s report:

“Energy consumption should be neutral; production should be regulated. Do not regulate what people do with it”.

Publishing this information by the Riksbank is highly inappropriate. Roughly as inappropriate as the FI’s chief did. Energy consumption should be neutral, production should be regulated. Not regulate what individuals do with it.

— 🇸🇪 Christian Ander | Shadowy Super Green Coder (@nderchris) June 10, 2022

In November 2021, Swedish regulators called for a ban on Bitcoin mining within the EU due to obstacles to meeting the Paris Agreement on climate change.

In early June 2022, Ethereum founder Vitalik Buterin criticised the New York state moratorium on mining using electricity generated from carbon-based sources.

According to him, authorities should not decide which specific applications may consume energy.

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