Bitcoin Miners Might No More Enjoy Sweden’s Green Electricity
Sweden may turn its back on crypto mining as concerns about the country’s increased demand for electricity emerge. The country’s leading Bitcoin mining industry could be at risk.
As reported by Bloomberg, Sweden could be change its stance on cryptocurrency mining as energy is needed in others sectors. The news agency quoted the Swedish Minister of Energy, Khashayar Farmanbar, said that his country’s economy is transforming “from a period of administration to an extreme expansion where our entire manufacturing industry is seeking to electrify.” Therefore the nation will have to think twice what to do with its power. Farmanbar added:
“We need energy for more useful things than bitcoin, to be honest.”
Two options
During the interview with Bloomberg, Farmanbar did not disclose the exact measures his government is considering Nevertheless, two options prevailed. The first is to make an alteration in the order in which power users are connected to the network. This way you can prioritize those that add the most perceived value to society.
The second option would be to limit the scope of the preferential tax treatment that applies to all data centers in Sweden. currently enjoy. Initially, the tax incentive was to attract multinational corporations such as Microsoft and Facebook, opposed to crypto mining operations, as senior adviser at industry group Swedenergy, Erik Thornstrom, said:
“I think the existing tax reliefs should be focused on the activities they were meant to attract in the first place. Mining of cryptocurrencies is more questionable.”
With until recently an abundance of hydro reservoirs and wind parks providing clean, low-cost electricity, Sweden has attracted many Bitcoin mining operations and its industry has grown to be leading in Europe.
Sweden’s Bitcoin mining industry had previously got under the looking glass when the financial supervisory authority of Sweden, Finansinspektionen, called for a ban on crypto mining considering it burdensome to climate.
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Source: igaming
