Swedish Central Bank snipes at Bitcoin’s energy-intensive PoW
Bitcoin lovers had been fast to react to the Riksbank report stating that the energy-intensive BTC mining must be prohibited
By Shashank Bhardwaj
The oldest central financial institution on this planet, Riksbank, aka the Swedish central financial institution, has revealed a report, ‘Cryptocurrencies and their impact on financial stability’, saying that Bitcoin (BTC) and crypto mining must be forbidden.
The report makes a case for a ban on Bitcoin mining owing to environmental considerations and that the proof-of-work (PoW) consensus mechanism consumes massive quantities of vitality for fixing advanced computational puzzles. The report acknowledged, “Recently, some extraction of crypto assets has been established in northern Sweden, where it consumes as much electricity as 200,000 households do on an annual basis.”
In its examination, the paper cites friends at the environmental company and the Swedish Financial Supervisory Authority, who stated, “The proof-of-work method, which is used to confirm transactions and extract new crypto assets, should be banned in favour of other, less energy-intensive methods.”
Sweden is dwelling to a number of Bitcoin startups and is sort of superior in adopting Bitcoin. However, for the reason that banks and governments repeatedly take goal at PoW vitality use, the report did little to shock individuals.