Norway is considering supporting Sweden’s call for a European Union ban on cryptocurrency mining.

The Norwegian government is examining methods to reduce the environmental effect of cryptocurrency mining and may endorse Swedish suggestions, such as a European ban on proof-of-work mining. The European Commission has stated that it is already striving to encourage a shift to “more sustainable” practices.

Authorities in Norway are considering new regulatory steps to address the environmental consequences of cryptocurrency mining, according to the country’s minister responsible for local government and regional development. As part of the assessment, the Norwegian government plans to investigate recent remedies proposed by Swedish authorities and strive toward shared European laws. Minister Bjrn Arild Gram also commented to Euronews Next:

Although crypto mining and its underlying technology might represent some possible benefits in the long run, it is difficult to justify the extensive use of renewable energy today.

Both countries, along with another Nordic country, Iceland, have been attractive bitcoin mining locations in recent years. The region has an abundance of renewable energy resources and keeps power costs low. According to Eurostat statistics for the first half of 2021, Norway has the cheapest electricity for non-household users in the European Economic Area (EEA), with hydroelectric power generation accounting for more than 90% of its energy.

Bjrn Gram’s comment comes after the directors of Sweden’s financial services and environmental protection agencies asked for a European Union-wide ban on proof-of-work mining following a multifold spike in energy use by bitcoin miners in the nation this year. “Sweden need the renewable energy targeted by crypto asset producers for the climate transition of our essential services, and increased use by miners threatens our ability to meet the Paris Agreement,” authorities cautioned.

The European Commission has urged cryptocurrency miners to abandon the Proof-of-Work concept.

Regional Development Minister Bjrn Gram did not disclose any specifics on the regulatory initiatives under consideration by the Norwegian government. However, if Norway follows Sweden’s lead, it may result in a crackdown on crypto mining facilities that demand huge quantities of electricity.

Meanwhile, the European Commission (EC), which would be in charge of enforcing crypto regulations in the EU, has admitted that it is already encouraging the crypto mining industry to “migrate applications” away from energy-intensive proof-of-work blockchains and toward less demanding protocols such as proof-of-stake and hybrid consensus models, according to Euronews Next. According to a representative for the executive body, the EC is aiming to promote “more sustainable forms of blockchain technologies.”

According to the spokesman, the Commission has “ambitious emission reduction objectives” and encourages the progress of less energy-intensive blockchain technology through startup financing and direct construction of a public sector blockchain network. Although the Paris Climate Agreement, to which Swedish regulators refer, does not prohibit crypto mining, Brussels is aware of developments in jurisdictions like as China and will address the subject with EU member states, according to the official.

Patrick

Coincu News