Climate: Authorities In Sweden Warn Of The Dangers Posed By Crypto Assets

Climate: Authorities in Sweden warn of the dangers posed by crypto assets

New Delhi, Nov 26th : .As India and the US work together to regulate cryptocurrencies, top Swedish financial- and environment officials have called for an EU-wide ban on cryptocurrency mining.

 Climate: Authorities In Sweden Warn Of The Dangers Posed By Crypto Assets-TeluguStop.com

They claim that crypto assets are used for criminal purposes, such as money laundering and terrorist financing, and that the EU should prohibit the use of these assets for criminal purposes.
According to the Swedish Financial Supervisory Authority (Swedish Environmental Protection Agency), cryptocurrency mining could also pose a threat to global warming targets of 1.5 degrees Celsius under the 2015 Paris Agreement.

The most common method of producing crypto-assets is to use huge amounts of electricity, which generates large CO2 emissions.

“The social benefit of crypto assets is questionable.” The Swedish Financial Supervisory Authority is like other international organizations such as the International Monetary Fund or the US Federal Reserve Board that considers certain aspects of crypto-assets to be problematic,” Erik Thedeen (director of the Swedish Financial Supervisory Authority) stated in an open letter.

“Crypto assets also have a significant adverse impact on the climate because mining generates large amounts of greenhouse gases and threatens the climate change that must happen quickly.This is alarming and crypto-assets need to be regulated,” Thedeen said.

The letter comes as the US banking regulators have announced a plan for clarifying the rules and regulations regarding how banks can use cryptocurrency over the next year.This is at a moment when governments around the world, including India, are considering the risks associated with cryptocurrency and protecting investors.

The upcoming Cryptocurrency Regulation of Official Digi Currency Bill 2021 in India seeks to ban all private cryptocurrencies.

Digiconomist and the University of Cambridge estimate that the two biggest crypto-assets, Bitcoin, and Ethereum, use twice as much electricity per year than the entire of Sweden.

Digiconomist estimates that crypto assets at their current market value could lead to the release of up 120 million tonnes of CO2 into the atmosphere each year.

“To get a better understanding of this number, we can compare the emissions from long-distance flight with it.Using data from the aviation industry from ICAO Carbon Emissions Calculator, and adding the high-altitude effect, we can see that the emissions from the two biggest crypto-assets are equal to 100 million round-trip flights between Sweden & Thailand,” stated Bjorn Risinger (Director General of the Swedish Environmental Protection Agency).

The industry’s large carbon footprint can be explained by the fact that crypto-production is concentrated in low-energy countries and high amounts of fossil-dependent electricity generation.

The authorities noted that Bitcoin’s value has increased significantly, which has also extended the lives of fossil-based energy producers.

They demanded proof of work for an EU-level ban on energy-intensive mining methods.

“It is important that Sweden, the EU, and the EU lead by example to maximize our chances of meeting Paris Agreement.The open letter stated that we should encourage other countries and regions alike to do the same.

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