The energy minister of Sweden has suggested that the government is worried about the projected rise in electricity demand. According to a media report, the Swedish bitcoin mining industry is set to lose the special treatment it has enjoyed for some time.

Sweden could reconsider its position on cryptocurrency mining, despite forecasts of growing energy requirements in other sectors. According to Bloomberg, Khashayar Farmanbar, Minister of Energy, stated that the Swedish economy is transitioning “from a period in administration to an extreme expansion where all of our manufacturing industry are seeking to electrify.”

To be truthful, we need energy to do more than just bitcoin.

Sweden’s hydro reservoirs and wind farms provide clean, low-cost electricity that has attracted many Bitcoin miners. The country’s coin minting industry is now one of the most important in Europe. The government of Stockholm is concerned about the increased power consumption and has asked the Swedish Energy Agency (Swedish Energy Agency) to estimate the energy use in the digital space, including crypto mining.

Location of mining farms is heavily determined by availability of cheap electricity, while profits for their operators are dependent in large part on the price of crypto assets. These conditions will likely be worsened by the results of the ordered review, and the crypto market crash has already affected the second.

Farmanbar did not reveal what government measures might be taken to limit mining, but there were two options. One option is to alter the order of power users connected to the network. This would prioritize those who presumably provide more benefits for society such as the creation of large numbers jobs.

Another possible move would be to limit the tax preferential all data centers currently receive. According to Erik Thornstrom (a senior advisor at industry group Swedenergy), the incentive was intended to attract multinational corporations like Microsoft and Facebook.

I believe that tax reliefs existing should be used to attract the exact activities they are intended to attract. More questionable is the mining of cryptocurrency.

Officials are urged to learn more about innovative technologies like crypto mining
Sukesh Kumar Tedla, who is the chair of the Swedish Blockchain Association, stated that “I believe a lot more public officials including the energy secretary who have strong opinions regarding cryptocurrency and blockchain in general needs further education and awareness.” While he acknowledged that crypto mining requires a lot of energy, he also pointed out the many other innovative technologies.

After last year’s discussions about the future of Bitcoin mining in Sweden, the directors of Sweden’s financial services and environment protection agencies proposed banning energy-intensive proof of work (PoW), mining in the European Union against the background of an increase in energy consumption in this sector.

Officials from other EU countries, such as Spain, Germany and Norway, have supported their call to end the alleged threat to climate change goals. A proposal to ban PoW mining was dropped from the MiCA regulatory package approved by EU institutions. According to crypto communities across the continent, the controversial text amounts to a Bitcoin ban.

Companies from the Swedish steel industry are one of those who hope to reap the benefits from crypto mining. SSAB, for instance, plans to create a carbon-free production. It also insists that grid operators prioritize industrial projects similar to its own and not connect users on a first come, first served basis as they do currently. Tomas Hirsch (head of energy at SSAB) stated that Sweden could reduce its carbon dioxide emissions by 10%.

“Is bitcoin mining something we should be using our power for when we can use it to make fossil-free steel? It’s not trivial in free markets,” Minister Farmanbar said, noting that Sweden needs to examine its energy use in light of anticipated bottlenecks. As politicians like him feel more pressure to fight global warming, his statement is timely.



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Angie Byrd