Kosovo puts a Ban on Crypto Mining due to severe power crisis all over the country. Let’s find out everything about this.
Kosovo Bans Crypto Mining amid severe power crisis. Kosovo’s authorities imposed the ban on crypto mining to curb power consumption as the country is facing the worst power crisis in a decade. This whole issue is reportedly due to production caused by high power consumption from Crypto mining.
The Economy and Energy Minister of Kosovo, Artane Rizvanolli did the announcement of the ban on Tuesday. He said that “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.”
Cheap prices attracting Crypto miners
Kosovo has relatively cheap power prices compared to the developed world. These cheap prices attract many young enthusiasts in Kosovo to try their luck in crypto mining.
Reason for Kosovo putting a Ban on Crypto Mining
However, the coal powered thermal power plants weren’t able to cope up with such a high demand. As a result there were outages all over Kosovo. Additionally, due to the high import prices, the government was left with no other choice than introducing power cuts.
On top of that, gas prices in Europe grew more than 30 per cent on Tuesday. And after low power delivery from Russia raised concerns of an energy crisis as the hard winter approaches.
Previously, the country declared a state of emergency for a duration of 2 months. This state of emergency will allow the government to channel more money for power imports, might imply more power outages and strict regulatory measures.
Authorities in a tough situation
The situation is not favourable for the authorities of Kosovo. With a population of 1.8 million people the coin is now importing more than 40% of the power it consumes. Perhaps, this is also due to a surge in demand of electricity during the winter when people use power mainly for heating.
Concerns related to the power production
Unfortunately, close to 90% percent of all the electricity production in Kosovo is from coal. Coal powered thermal plants are really inefficient and have really poor emissions. The toxic gases that are a by-product of burning are a grave concern when talking about climate change.
Analysis and research reveals a really important fact about Kosovo. These studies predict that Kosovo has the world’s 5th largest lignite coal reserves of about 12-14 billion tons. This abundance of coal makes it an easy resource for the country to use for power production.
Kosovo puts a Ban on Crypto Mining due to severe power crisis all over the country. Indeed, high power consumption is one of the greatest banes of the crypto environment. Additionally, if the power is from non renewable resources like coal, the problem only amplifies. Hopefully, Crypto Mining will soon adapt to a more eco friendly power generation method.
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