The current energy crisis has highlights the impact of crypto mining on global energy demands. In response, the Republic of Kosovo will now ban cryptocurrency mining as a means of tackling the energy crisis. The local government had declared a 60-day state of emergency. This will allow it to allocate more money for energy imports and introduce power cuts.
Kosovo’s economy minister, Artane Rizvanolli, acted on the advice of the Technical Committee for Emergency Measures in Energy Supply on Dec. 31. This occurred as part of a set of relief measures.
The measures include the “prohibition of the production of cryptocurrencies throughout the territory.” This means that miners must stop their offerings and refrain from producing crypto inside of the country.
The government declared a state of emergency in December that will last for 60 days. The state of emergency will allow the country to allocate more money for energy imports and introduce power cuts. This is according to a report by the Gazeta Express, a local newspaper.
The move is similar to that taken by Iran in December to ban crypto mining until March. This is in order to save power and avoid blackouts over the winter. The winter season is when energy is considered to be the most vital.
The Digiconomist’s Bitcoin Energy Consumption Index estimated that Bitcoin mining takes around 1,544 kWh to complete. That’s around 53 days of power for the average household. This means that one Bitcoin transaction would equate to $200 in energy bills.
From these figures, it is easy to see why crypto has such a huge effect on energy. The new ban by Kosovo could prevent homes from losing energy due to overconsumption by crypto miners. It could also help to reduce the country’s contribution to global warming.
