Kosovo Places Ban on Crypto Mining To Save Energy
Updated · Feb 21, 2022
On Tuesday, Kosovo introduced a ban on mining cryptocurrency as the country struggles to stave off its worst energy crisis in a decade.
Ban on Crypto Mining
The government announced a ban on cryptocurrency mining in an effort to cut down on high electricity consumption in the country. Currently, Kosovo is facing one of its most severe energy crises, characterized by frequent power outages.
Due to cheap electricity costs, many young Kosovars have turned to cryptocurrency mining as a means to earn extra money. This, however, hasn't helped the country deal with the global shortfall of energy amid a spike in prices.
Most miners mine Bitcoin, which requires massive amounts of computational power. Altcoins do not consume as much energy to produce, but Economy Minister Atrane Rizvanolli announced a halt to the mining of all cryptocurrencies. The government took the decision after a technical committee recommended the move.
“These actions are aimed at addressing potential unexpected or long term lack of electricity production capacities, capacities of transmission of distribution of energy in order to overcome the energy crisis without further burdening the citizens of the Republic of Kosovo,” Rizvanolli said in a statement.
The Economy Minister added that the ban will be strictly enforced. “All law enforcement agencies will stop the production of this activity in cooperation with other relevant institutions that will identify the locations where there is cryptocurrency production.”
With European gas prices skyrocketing and a cut in supply from Russia, there are fears over the approach of colder weather. Power plant outages moved the government into declaring a state of emergency last month, scheduled to last for 60 days.
Now many Kosovars use generators to power their homes, following the introduction of emergency measures that include power cuts to their homes.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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