Swedish Regulators Call For Prohibition on Proof-of-Work Cryptocurrency Mining

Cryptocurrency mining is having a significant impact on the globe right now. Whether you’re looking to purchase a graphics card for your latest gaming machine or you simply believe in climate change, you’ve almost certainly encountered issues with cryptocurrency.

According to Euronews, you’re not alone in feeling this way. Erik Thedéen and Bjorn Risinger, heads of the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency, respectively, have expressed worry about the country’s capacity to satisfy its climate-related responsibilities.

As per the directors, crypto mining grew by several hundred percent in Sweden between April and August. This corresponds to what we’ve seen in the graphics card markets in Europe over the last year. Particularly in Germany and Austria, where cards are selling for more than double the authorized price, most likely because they are being used to mine cryptocurrency.

They claim that the prevailing Bitcoin mining in the country consumes far more power as 200,000 normal households, and we’ve personally witnessed some particularly damaging power ramifications when it comes to Bitcoin transactions, so it’s easy to understand why they’re worried about not meeting their Paris Climate Agreement targets in time.

They aren’t the only ones, either. The directors of Sweden’s most important financial and environmental agencies are working to put a stop to proof-of-work cryptocurrency mining. A large amount of computational power is required for this process, which is used to mint several famous cryptocurrencies. It requires solving mathematical problems, which is time-consuming.

Depending on the country, it may equate to a few hundred thousand households worth of electricity saved. Electricity rates in Sweden are quite low, and as a result of the nation’s attempts to promote renewable energy, the country has regrettably become a magnet for cryptocurrency mining companies.

This is also expected to rise now that cryptocurrencies have been declared banned in China, and many people will be seeking for other locales. Aside from that, the directors are urging Sweden to put a halt to any new cryptocurrency mining operations and to prohibit any firms engaged in trading or investing in digital currencies from professing environmental sustainability as a result of the large quantities of energy needed.