Sweden's central bank (Riksbank) has called for a ban on Bitcoin and other cryptocurrencies that use the Proof-of-Work (PoW) consensus algorithm due t
Sweden's central bank has called for a ban on Bitcoin and other cryptocurrencies that use the Proof-of-Work (PoW) consensus algorithm due to their negative environmental impact.

The announcement was made by the Riksbank after the Nordic national energy regulator released a report titled “Cryptocurrencies and Their Impact on Financial Stability”, whereby the rate Cryptocurrency mining in this country has reached the energy consumption of 200,000 households.

The document quoted a representative of the Environmental Protection Department as saying: “The Proof-of-Work method, used to confirm transactions and extract new cryptocurrencies, will be banned and replaced by a less energy-intensive methods”.

The report also casts doubt on the need to accept Bythyon as a means of payment in Sweden.

In response, the founder of Swedish bitcoin exchange BTCX, Christian Ander, criticized the Riksbank report saying: “It is inappropriate for Riksbank to publish this information. Energy consumption must be neutral, production must be moderate. The Riksbank has no right to tell people what they can and can't do with regard to electricity.”

Earlier, a report by the news agency “Our World in Data” proved that the global sports industry emits more than three times more emissions than Bitcoin blockchain mining. The question is why central banks continue to attack PoW power usage while still embracing the sports industry.

For Bitcoin followers in particular and virtual currencies in general, the impact of mining on the environment cannot be ignored. Iran once lost power partly because of Bitcoin. Meanwhile, billionaire Bill Gates warns that Bitcoin is not something that is good for the environment.
Axact

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