In Brief:
- Cryptocurrency Mining Banned in Kosovo to Save Electricity.
- The Kosovo government declared a state of emergency for 60 days in December 2021.
- The government is acting on a committee recommendation to prohibit mining.
Kosovo’s government banned cryptocurrency mining on Tuesday in an effort to reduce electricity use as the country struggled with its worst energy crisis in a decade as a result of production disruptions.
“All law enforcement agencies will stop the production of this activity in cooperation with other relevant institutions that will identify the locations where there is cryptocurrency production,” Economy and Energy Minister Artane Rizvanolli said in a statement.
Bitcoin (BTC) mining has become a hot topic in recent months, with the argument centred on the impact of mining on climate change. Bitcoin (BTC) is projected to burn 707KwH each transaction, according to an analysis from Columbia Climate School. Bitcoin (BTC) mining is predicted to utilise 121.36 terawatt-hours (TWh) a year in total.To put that in context, if Bitcoin were a country, it would be among the top 30 energy consumers.
Due to cheap power prices in Kosovo in recent years, many young people in Kosovo have got involved in cryptocurrency mining.Minister Rizvanolli said that law enforcement institutions will intervene to stop production of crypto currencies and will work on identification of the locations dealing with crypto mining.
The Kosovo government declared a state of emergency for 60 days in December 2021 to allow finances to be reallocated to energy imports. Kosovo presently imports more than 40% of its energy, according to a Reuters study. Lignite, which discharges poisonous fumes into the environment, accounts for 90% of energy production.
Kosovo is riding on the coat tails of other countries that are experiencing decreasing electrical supply and soaring hashrates. To overcome electrical problems, Iran spent much of 2021 alternating between welcoming and forbidding the sector whereas China completely banned the process.
Also Read: President Putin Signs Law Legalizing Cryptocurrency Mining in Russia
