Sweden invites European Union countries to ban cryptocurrency mining because the use of electrical energy is too large and not good for the environment.
Two directors of the Swedish Financial Supervisory Authority, Erik Thedeen and Bjorn Risinger, said the increase in crypto mining in Sweden and the excessive use of electricity from these activities prevented them from complying with the Paris Climate agreement.
That's why they suggest blocking crypto mining activity across Europe. Then Sweden could ban the construction of new crypto 'mines', as well as prohibit crypto trading and investment companies from calling themselves environmentally friendly companies.
The two men also said electricity consumption for bitcoin mining in Sweden increased by hundreds of percent between April and August, and now electricity consumption is equivalent to electricity use in 200,000 homes.
"Crypto assets are a threat to climate change -- energy-intensive mining should be banned. The University of Cambridge and the Digiconomist estimate that the two largest crypto assets, Bitcoin and Ethereum, combined, use twice as much electricity as Sweden does in a year, " he said.
Sweden is known as a country with low electricity tariffs because they use renewable energy sources. But ironically, that fact is what makes miners interested in making crypto mines in Sweden.
The problem got worse after China legalized all sorts of crypto activities a few months ago, forcing miners to look elsewhere.
However, this bad impact on the environment does not only occur because of crypto. Even the average electricity use for NFTs -- which has recently become popular -- has a larger carbon footprint than the average electricity consumption of a person living in the European Union.