Skip to main content

Swedish regulators call on the EU to ban energy intensive cryptocurrency mining

by Sangam Paudel, Dec 4
2 minutes read

Directors from the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency are calling for an EU-wide ban on ‘proof of work’ cryptocurrency mining, for Sweden to halt establishment of new crypto-mining operations and for companies trading and investing in crypto assets to be prohibited from describing their business activities as environmentally sustainable. The ‘proof of work’ system used by currencies such as Bitcoin and Ethereum require computers to carry out complicated mathematical operations to validate transactions, leading to the consumption of large amounts of energy.

black android smartphone on brown wooden table

So what?

There has been a large increase in crypto mining in the Nordic countries due to crackdowns in China and the presence of cheap and renewable energy in the Nordic region. Potential crackdowns on crypto currency in the region might push it to other countries with more lax regulations, contingent on backing from the financial sector. However, such actions could put a strain on valuable energy resources in developing regions and might also push for greater adoption of the currency without necessary public buy-in. The energy composition of the region would also influence how ‘clean’ crypto mining becomes.

The future of crypto currency and its impact on the energy sector will also be influenced by financial mechanisms. A carbon tax, for instance, could push the crypto currency sector away from the intensive ‘proof of work’ system to one with much lower carbon emissions.

Sources

Details

by Sangam Paudel Spotted 61 signals

Have you spotted a signal of change?

Register to receive the latest from the Futures Centre.
Sign up

  • 0
  • Share

Join discussion

Related signals

Our use of cookies

We use necessary cookies to make our site work. We'd also like to set optional analytics cookies to help us improve it. We won't set optional cookies unless you enable them. Using this tool will set a cookie on your device to remember your preferences.

For more detailed information about the cookies we use, see our Cookies page.

Necessary cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. You may disable these by changing your browser settings, but this may affect how the website functions.

Analytics cookies

We'd like to set Google Analytics cookies to help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone. For more information on how these cookies work, please see our 'Cookies page'.

>