The 26th UN Climate Change Conference is not over yet, and Swedish regulators are already calling for a ban mining of cryptocurrencies in the EU as a threat to the implementation of an international agreement.
According to the Swedish Financial Inspectorate, miningProof-of-Work cryptoassets are too energy-intensive and exacerbates the threat of climate change. Under pressure from the public, miners are striving to switch to renewable sources, but this situation threatens with a shortage of electricity in the Scandinavian region.
On the one hand, mining cryptocurrency catastrophically increases the carbon footprint in the atmosphere. On the other hand, it threatens with a deficit in other sectors of the economy.
According to regulators, the mining industryneeds to be converted to more sustainable mining methods that will reduce energy consumption by 99.95%. Until the cardinal solution of the issue, Sweden proposes:
- Consider a ban at the EU level on mining PoW cryptocurrencies;
- Take tough measures to limit the development of crypto mining using energy-intensive methods;
- Prohibit PoW mining product from being labeled, described, or sold as safe.
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