The Swedish financial regulator Finansinspektionen (FI) and the Swedish Environmental Protection Agency (Swedish EPA) have called for an EU ban on proof-of-work mining, arguing that it risks undermining the region’s attempts to shift to greener energy.
According to Cambridge University and Digiconomist, an electric car could travel 1.8 million miles on the energy used to mine one bitcoin, and the daily mining of 144 blocks, or about 900 bitcoins, adds 120 million tonnes of CO2 to the atmosphere each year. Bitcoin and Ethereum consume roughly twice as much energy as Sweden in a year, their study claims. However, Ark Investment Management’s argument that Bitcoin burns less than ten percent of the energy consumed globally by the traditional banking system serves as an interesting counterpoint to the study. It is worth noting that Digiconomist is a vocal critic of cryptocurrency inefficiencies.
The FI and EPA director generals’ views appear to be concerned in particular with the EU establishing the norm for conformity with the Paris Agreement’s obligations. Earlier the environmentalists protested against the Greenidge facility in New York and raised concerns about bitcoin mining’s social utility, and now the director generals believe that mining jeopardises the urgently needed climate transition. Despite the energy requirements of 8000 mining machines, Jeff Kirt, the CEO of operations, declared in the first half of 2021 that the facility’s environmental footprint had never been better.
The Swedish regulators want the EU to ban proof-of-work mining, and Sweden to take steps to curb crypto mining and to prevent businesses that deal in crypto assets from claiming to be environmentally friendly. Meanwhile, a large scale miner Argo Blockchain Solutions has teamed up with DMG Blockchain to launch the world’s first bitcoin mining pool powered entirely by hydroelectric energy.
Because of the low energy prices, minimal taxes, and accessible green energy, a great number of crypto miners have set up shop in Nordic countries.