Sweden urges to ban Bitcoin mining in the EU

Swedish regulators believe that mining bitcoin and other cryptocurrencies goes against the European Union's compliance with the Paris Climate Accords.

In a joint statement, the director generals of both the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency Erik Thedéen and Björn Risinger, called for a ban on the energy-intensive mining of digital assets.

Officials noted that Digiconomist estimates that crypto-assets at their current market value lead to release of up to 120 million tonnes of CO2 in the atmosphere per year. These figures are equivalent to 100 million round-trip flights between Sweden and Thailand.

The officials also stressed that due to the increased attention to CO2 emissions and China's recent Bitcoin prohibition, an increasing number of crypto producers are exploring the possibility of using renewable energy sources for mining. Due to the availability and low prices for it in Scandinavia, many of the industry participants are considering relocation to the Nordic region.

As a result, between April and August this year, electricity consumption for Bitcoin mining in Sweden increased by several hundred per cent and now amounts to 1 TWh annually. That is equal to the electricity of 200,000 Swedish households.

Thedéen and Risinger fear that there is a risk that the available renewable energy in Sweden will be insufficient to cover the required climate transition, which must be implemented under the Paris Accords.

Earlier, American hedge fund billionaire and environmentalist Tom Steyer called called Bitcoin "a disaster" for the environment.

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