Kosovo Halts Cryptocurrency Mining Amid Energy Crisis
The government of Kosovo has decided to suspend crypto mining activities in the country as part of measures to deal with power shortages this winter. The move has been proposed by a special parliamentary committee tasked with bridging the gap between electricity demand and supply. Kosovo Authorities Ban Crypto Mining to Save Needed Energy
The executive power in Pristina has moved to stop the energy-intensive minting of digital coins in Kosovo, a partially recognized republic in Southeast Europe. The country is facing electricity shortages during the cold winter months, local media reported.
The halting of crypto mining operations was announced on Tuesday by Artane Rizvanolli, Kosovo’s minister of economy. According to her statement quoted by Gazeta Express, the decision was taken at the recommendation of the Technical Committee on “Emergency Measures for Energy Supply” set up by the nation’s legislature.
The restrictions were agreed upon in the parliament of Kosovo last week, DTT Net reported. Kosovo has been experiencing power cuts amid increased demand for electricity during the cold winter months and authorities are trying to find solutions that will mitigate the energy crisis.
Minister Rizvanolli added that Kosovo’s law enforcement institutions will join the efforts to locate crypto mining facilities and halt the mining of digital currencies. “These actions are aimed at addressing potential unexpected or long term lack of electricity production capacities, capacities of transmission or distribution of energy in order to overcome the energy crisis without further burdening the citizens of the Republic of Kosovo,” she elaborated.
In order to deal with the power deficit, the government declared a 60-day state of emergency in December which will allow it to allocate funds for energy imports and impose power cuts. Kosovo’s energy needs are mostly satisfied by its coal-fired power plants.
During winter, however, demand surpasses supply and the Kosovo Energy Distribution Systems company is forced to compensate for the shortages with imports. At the same time, Gazeta Express notes, the global energy crisis has resulted in an enormous increase in electricity prices on the international market.
Kosovo has seen the popularity of mining grow with crypto prices, especially in its predominantly Serb northern part where consumers in several municipalities have not paid anything for electricity in over 20 years. Earlier this year, Balkan Insight reported that the Albanian-controlled government in Pristina had ordered the country’s public utility to cover these bills for another six months while authorities are trying to find a permanent solution. Tags in this story ban, bills, Consumers, consumption, Crypto, crypto farms, crypto mining, Cryptocurrencies, Cryptocurrency, cryptocurrency mining, deficit, Electricity, Energy, Government, kosovo, Measure, mining, mining facilities, parliament, power, Pristina, restrictions, shortages
Do you think Kosovo will allow crypto miners to resume activities once it overcomes its problems with electricity shortages? Tell us in the comments section below. Lubomir Tassev
Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Power Outages in Russia’s Irkutsk Region Blamed on Home Miners MINING | 3 days ago 0.2 Zettahash: Bitcoin"s Hashrate Taps New Lifetime High, Mining Difficulty Nears ATH MINING | 3 days ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCryptocurrency Draft Law Presented in Peru Next articleDecentralized Protocol Launch: Panther DAO Votes to Launch Private DeFi Protocol End of January Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItEthereum Has Burned 1.2 Million ETH in 4 Months, Close to $5 Billion in Ether Destroyed
With three days left until the end of 2021, the Ethereum network and its native token ether have had a phenomenal year as ether has increased more than 450% in value in 12 months. 145 days ago, on August 5, ... read more.Tokenized Bitcoin in Circulation Nears a Half Million BTC, Bitcoin-Pegged Token Value Exceeds $21 Billion Bank of Russia to Collect Data on Crypto-Related Transactions Between Individuals Mexico"s Third Richest Billionaire"s Advice: Invest in Bitcoin, Stay Away From Dollars, Euros Million-Dollar Digital Collectibles: An In-Depth Look at the Top 10 Most Expensive NFTs Sold This Year