Sweden’s financial and environmental leaders, according to reports, have pressed the European Union to outlaw bitcoin mining based on proof-of-work due to its negative impact on the environment.
Crypto mining is opposed by both Erik Thedéen, CEO of Sweden’s Financial Services Authority, and Bjorn Risinger, CEO of Sweden’s Environmental Protection Agency, who are both opposed to it.
Cryptocurrency mining in Sweden surged significantly between April and August, consuming enough electricity to power 200,000 average-sized homes. In response to the Chinese government’s crackdown on cryptocurrency mining, there has been a significant exodus of miners to other regions of the world.
According to Swedish officials, a blanket ban on proof-of-work mining should be implemented because other methods consume 99 percent less energy. According to the directors, coin minting facilities in Sweden that use energy-intensive techniques should not be permitted to operate.
A deterrent to mining, according to the authors Thedéen and Risinger, can be provided via taxes and education.
Sweden and other countries, for example, may decide to impose taxes on bitcoin’s creation, which is energy-intensive. Alternatives include “more information about the climate difficulties associated with crypto-assets, in the expectation that both producers and investors will demand a shift to energy-efficient mining technology,” according to the authors.
It is recommended that new crypto mining activities be forbidden and that enterprises engaged in crypto asset trade and investment be unable to claim environmental sustainability.
In their statement, they noted that “immediate emission reductions are essential, as well as the utilization of renewable energy for the transition of key services.”
Despite Sweden’s call for mining to be stopped, the state of Texas has embraced it. It is “extremely stupid” that Sweden is attempting to restrict proof-of-work mining across the European Union, according to Melanion Capital, a distributor of Bitcoin exchange-traded funds.