May 28, 2023

Swedish authorities cancel incentives for miners

Article reading time:
1 min.

Swedish authorities cancel incentives for miners

The Government of the Kingdom of Sweden is canceling tax breaks for miners. The electricity tariff for cryptocurrency mining will increase 58 times - from $0.0006 to $0.035 per kWh.

Benefits to be lifted from July, show2023 budget report data. The document was released in November 2022, but has only just been released to the press. It is not yet clear whether the new restrictions will apply only to miners or the entire crypto industry as a whole.

However, Jaran Mellerud, senior analyst at mining company Luxor Technologies, believes that a 6,000% increase in the cost of 1 kWh could eventually destroy the local industry:

“This decision can be seen as an attack on bitcoin mining.”

In 2017, Sweden reduced taxes for miners by98% in order to attract businesses to the country, but after a few years the industry did not create the expected number of jobs, and the macroeconomic situation changed.

In April, Sweden's central bank, the Riksbank, published a report onthe results of the third stage of experiments with the state stablecoin, where the main attention is paid to issues of governance and programmability. Riksbank researchers noted that the digital krone should function on the basis of distributed ledger technology (DLT). This will ensure the programmability of the digital currency of the Central Bank, so that it can be used for payments and settlements.