Swedish miners to be supplied with electricity on a residual basis
Energy Minister Khashayar Farmanbar said the country needed the resource “for more useful things than bitcoin”
18.07.2022 - 16:00
329
2 min
0
What’s new? Swedish Energy Minister Hashayar Farmanbar said that the country was faced with the choice of allocating more electricity to businesses that provide jobs or increasing the capacity of mining companies. He stressed that Sweden needs the resource “for more useful things than bitcoin.” The government is concerned about the increased consumption of electricity, so it has asked the relevant agency to create ways to track the energy used for digital infrastructure.
Information on Bloomberg's website
What does the energy minister say? According to Farmanbar, the issue with electricity distribution is not controversial. Preference will be given to those organizations that benefit the community, especially the provision of jobs. He added:
“We are moving from a period of administration to an extreme expansion where our entire manufacturing industry is seeking to electrify.”
According to the European Central Bank, bitcoin mining consumes as much electricity as an average-sized country like Spain or the Netherlands. The scale of the sector in Sweden is difficult to estimate because there is no public data on the number of miners and the electricity they consume. As of January 2022, Sweden's share of the global BTC hashrate was 0,84%, according to the Cambridge Bitcoin Electricity Consumption Index (CBECI).
In June, Sweden's central bank called for a ban on bitcoin and other cryptocurrencies using the Proof of Work (PoW) consensus algorithm because of their negative impact on the environment. The regulator published the report “Cryptocurrencies and their impact on financial stability,” according to which the share of mining in the country reached the level of energy consumption of 200 000 households.
Useful material?
Market
Users who have experienced withdrawal problems in the last two days will be eligible to participate
Mar 28, 2024
Market
Last July, a criminal investigation into the exchange was opened by the US authorities
Mar 27, 2024
Market
The unrealized profit from the deal was $8,9 million
Mar 26, 2024
Incidents
The phasing out began on March 25
Mar 25, 2024
Crypto regulations
The new measures must go through additional stages of approval
Mar 25, 2024
Incidents
The popularity of this kind of project launch format has already led to blockchain overload
Mar 20, 2024