Cryptocurrency is a big threat to people and climate: Swedish authorities

New Delhi, November 26: When India and the United States are preparing to fix the world of unregulated cryptocurrencies, Sweden’s best financial and environmental authorities say that crypto assets are commonly used by criminals, so consumers He states that the risks are significant and calls for a ban on cryptocurrency mining throughout the European Union (EU) for purposes such as money laundering, terrorist financing and ransomware payments.

Cryptocurrency mining also threatens the goal of limiting global warming to 1.5 degrees Celsius under the 2015 Paris Agreement, according to the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency. Indian Cryptocurrency: Central Government Aims to Block “Irresponsible” Cryptocurrencies

The most common method for creating crypto assets requires huge amounts of power and produces large amounts of CO2 emissions.

“The social benefits of crypto assets are questionable. Like other international organizations such as the International Monetary Fund and the US Federal Reserve, the Swedish Financial Supervisory Authority considers that there are aspects of crypto assets that are problematic. “We do,” said Eric Teddin. , The director of the Swedish Financial Supervisory Authority said in an open letter.

“Cryptocurrency also has a significant negative impact on the climate, as the mining industry leads to massive greenhouse gas emissions and threatens climate change that needs to occur urgently. This is alarming and therefore crypto assets. It needs to be regulated, “added Thedeen. ..

The letter announced plans by U.S. banking regulators to clarify rules and regulations on how banks will use cryptocurrencies next year as governments around the world, including India, are considering risks. When you receive it associated with cryptocurrencies, it protects investors.

In India, the following cryptocurrencies and regulations of the official digital currency bill of 2021 seek to ban all private cryptocurrencies in India.

The University of Cambridge and Digiconomist estimate that the two largest crypto assets, Bitcoin and Ethereum, together will use about twice as much electricity in a year as Sweden as a whole.

Digiconomist estimates that crypto assets at current market value will release up to 120 million tonnes of CO2 into the atmosphere annually.

“To better understand this number, we can compare it to emissions from long-haul flights. Using aviation industry-specific data from the ICAO CarbonEmissions Calculator and adding high altitude effects, from the two largest crypto assets. “Today, it’s equivalent to 100 million round-trip flights between Sweden and Thailand,” said Bjorn Reisinger, director of the Swedish Environmental Protection Agency.

The reason for the high carbon dioxide emissions in the industry is that the majority of crypto production is in countries with low energy prices and a high share of fossil-dependent electricity production.

Authorities pointed out that this also extended the lifespan of older fossil-based energy producers, as the value of Bitcoin has increased significantly.

They called for a ban on proof of work at the EU level with energy-intensive mining methods.

The open letter states, “It is important that Sweden and the EU take the lead, set an example and maximize the potential for achieving the Paris Agreement, and strongly encourage other countries and regions to follow suit. Is. “

(The above story was first published in Latest LY at 11:06 AM IST on November 26, 2021. For news and updates on politics, the world, sports, entertainment and lifestyle, please visit our website. Please log on. Cryptocurrency is a big threat to people and climate: Swedish authorities

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