Swedish Central Bank snipes at Bitcoin's energy-intensive PoW
Bitcoin enthusiasts were quick to react to the Riksbank report stating that the energy-intensive BTC mining should be prohibited
By Shashank Bhardwaj
The oldest central bank in the world, Riksbank, aka the Swedish central bank, has published a report, ‘Cryptocurrencies and their impact on financial stability’, saying that Bitcoin (BTC) and crypto mining should be forbidden.
The report makes a case for a ban on Bitcoin mining owing to environmental concerns and that the proof-of-work (PoW) consensus mechanism consumes large amounts of energy for solving complex computational puzzles. The report stated, “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.”
Sweden is home to several Bitcoin startups and is quite advanced in adopting Bitcoin. However, since the banks and governments regularly take aim at PoW energy use, the report did little to surprise people.
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