Swedish officials are calling on the EU to ban energy-intensive cryptocurrency mining techniques, such as those used by Bitcoin. They say such activities cannot be tolerated at a time when all states in the world urgently need to reduce their energy consumption to combat the climate threat.

Erik Thedéen and Björn Risinger, respectively director of Swedish Financial Supervisory Authority and director of Swedish Environmental Protection Agency, sent an open letter to the EU in early November to warn of the heavy impact that crypto mining is having on the country. Between April and August 2021, energy consumption related to bitcoin mining in Sweden increased by "several hundred percent". According to them, this now represents the power consumption of 200,000 homes.

In the letter they therefore call for :

1. “The EU to consider an EU-level ban on the energy-intensive mining method proof of work. There are other methods for mining crypto-assets, that could also be used for Bitcoin and Ethereum, that are estimated to reduce energy consumption by 99.95% with maintained functionality.”

This “proof of work protocol” has several advantages, including a good degree of security and decentralisation. The disadvantage is that it is very energy-intensive, as the more miners there are, the more complex mathematical calculations they have to perform on their machines to mine cryptocurrencies and validate transactions.

2. “Sweden to meanwhile introduce measures that halt the continued establishment of crypto-mining production using energy-intensive methods.”

3. “That companies who trade and invest in crypto-assets, that were mined using the proof of work method, cannot be allowed to describe or market themselves or their activities as sustainable.”

Read the full text HERE

Publié le 13 décembre 2021