April 25, 2024

Swedish authorities cancel incentives for miners

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Swedish authorities cancel incentives for miners

The government of the Kingdom of Sweden cancels tax incentives for minersElectricity tariff for cryptocurrency miningwill grow 58 times — from $0.0006 to $0.035 per kWh.

The benefits will be abolished from July, according to the 2023 budget report.The document was released in November 2022, but has only now 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, a senior analyst at mining company Luxor Technologies, believes that a 6,000% increase in the cost of 1 kWh couldUltimately destroy the local industry:

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

In 2017, Sweden reduced taxes for miners by 98% to attract businesses to the country, however, a few years laterThe industry has not created the expected number of jobs, and the macroeconomic situation has changed.

In April, Sweden's central bank, Riksbank, published a report on the results of the third phase of experiments with a state-owned stablecoin, which focuses on governance and programmability.Riksbank researchers noted that the digital krona should function on the basis of distributed ledger technology (DLT).This will ensure the programmability of the central bank's digital currency, thanks to which it will be possible toUse for payments and settlements.