The Swedish Central Bank calls for proof of work ban due to its energy-intensive nature. This is similar to the bill passed in New York that has also been calling for a PoW ban. The central bank has been facing a lot of criticism due to the same. The report published by the bank called “Cryptocurrencies and their impact on financial stability” was called out by many Bitcoiners. The founder of BTX Bitcoin exchange, Christian Ander, also said that it was “highly inappropriate.”
Christian also pointed out that energy consumption must be regulated and neutral. But there should not be any restriction on what one wants to do with it. Another user on Twitter, Knut Svanholm, agreed with this, saying that if central banks care about the environment, they will shut down their operations.
Criticizing proof of work mining
Riksbank, the Swedish Central Bank that recently published the report, has followed in the footsteps of other banks that have also criticized mining. We all must know now that an attack on PoW is equivalent to an attack on Bitcoin. It is the only hard money available to us right now, and it directly threatens the traditional financial systems that these central banks dictate. No wonder none of them like it.
The report also says that Bitcoin mining just in North Sweden uses as much energy as 200,000 households on a yearly basis.
What don’t the central banks talk about?
Talking about the proof of work consensus, the general idea is that it consumes a lot of energy and is not good for the environment. The first point is true, while the second is not. Yes, BTC mining does take a lot of energy, but it’s shifting to renewable energy at a fast pace. So, the carbon footprint of Bitcoin is going down. In fact, Norway, which is a neighbor of Sweden, already uses 100% renewable energy for BTC mining.
Secondly, due to its nature, Bitcoin mining can be done anywhere, which makes it possible to utilize off-grid electricity that would be wasted otherwise. Even gas companies have started mining with the gases that would have been flared off otherwise.
What are your thoughts as the Swedish Central Bank calls for proof of work ban? And do you think it will be turned into law? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Fidelity CEO thinks it’s time to buy more cryptocurrencies.
