The central bank of Sweden, the oldest central bank in the world, has released a report that it needs to completely ban the mining of energy-intensive Bitcoin (BTC) and cryptocurrencies.
Also known as Sweden’s central bank, Riksbank, PoW criticized cryptocurrencies in a report entitled “Cryptocurrencies and Their Impact on Financial Stability.” According to reports:
Cryptocurrency extraction, recently installed in northern Sweden, consumes as much energy as 200,000 households consume annually.
According to Knut Svanholm, author of “∞ / 21M”, central banks do not have the right to instruct people how or not to use electricity.
Svanholm further argues that if the government is really interested in the environment, all activities should be permanently suspended tomorrow morning.
The report in the analysis of Bitcoin’s energy use also cited individuals from the Swedish Financial Supervisory Authority, similar to the Environment Agency and the SEC.
They are of the opinion that PoW or proof-of-work mechanisms “should be banned in favor of other, less energy-intensive methods.”
However, Svanholm does not fully agree. The author states: “Bitcoin mining guesses numbers over and over again. […] As many other Swedish financial institutions have done in front of them, “he added, the central bank should not give their opinion on what they do not understand.
This report was not surprising, as governments and banks often comment on PoW. You will also receive this report during discussions on Bitcoin adoption in Sweden. Sweden is very leading in the adoption of Bitcoin in Europe as it fosters several Bitcoin startups.
Well-known Swedish Bitcoin traders, such as the founders of the Swedish Bitcoin exchange BTX, Christian Under and Svanholm, immediately refused to report on Twitter by the central bank.
Svanholm shared a Youtube video reminiscent of the fact that “no energy used for Bitcoin mining is wasted”.
Under declared the report “very inappropriate.” In his tweet, he stated that energy consumption must be neutral and production must be regulated. But there should be no restrictions on what people do with it.