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Norway backs Sweden’s move to ban Proof-of-Work crypto mining

Norway

TL;DR Breakdown

  • Norway supports Sweden’s proposal to place measures against crypto mining.
  • The state plans to streamline digital assets.
  • Power consumption is getting out of hand.

Norway wants to limit the mining of digital assets through the new Swedish scheme. They intend to solve the arising concerns around carbon footprint. The Norwegian politician for the Center Party, Bjørn Arild Gram, wants strict measures to be put in place. He gave a clue in a recent interview.

Some officials from Sweden’s top agencies asked Europe to halt Proof-of-Work mining as it poses risks. They did this in an open letter. The ban will ensure the Paris Climate Agreement goals come to pass.

Moreover, Norway will also help to implement the ban linked to mining. The essence of this is to ensure there is an improvement to more viable and structured protocols.

Better protocols

The executives of Sweden’s financial services firms want a ban on Proof-of-Work mining in the European Union.

Under this system, computers need to solve complex mathematics for transactions to be validated. The process consumes a great deal of energy since the computing energy is high too. Ethereum has opted to transition from proof-of-work to consensus with ethereum 2.0.

Gram said that he is aware that crypto mining and the technology behind it may be essential. However, he notes that the heavy use of renewable energy is presently a challenge. He pointed out that the state needs to set up bans to tackle the outcomes of cryptocurrency mining.

Norway has become a haven for miners. The country tries to hold up reasonable electricity fees, and they also improve rich renewable energy. Norway has a significant percentage of its power being emitted from hydroelectric power generation.

At the beginning of the year, Norway extended the most affordable electricity. It does so for non – household clients in the European Economic Area ( EEA ). Gram said that there had been a great deal of energy usage by bitcoin miners in Norway this year. Sweden requires different parties to utilize renewable energy. It will be great for the climate change.

Forming value

Gram made the news amid a debate in the country on renewable energy to enable digital coin minting. He insists renewable energy should show its value.

A few months ago, the minister of Environment Espen Barth Eide said that Roof-of-Work crypto mining would present significant risks to their power-intensive firms in the future.

The EC is in charge of implementing crypto rules in the EU. The commission has admitted that it’s already encouraging the crypto mining industry to embrace better options. Miners should change softwares from proof-of-work blockchains to proof-of-stake.

Edith Muthoni

Edith Muthoni

Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, cryptocurrencies, blockchain, and cryptocurrency investments.

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