EU & Sweden Discussed Bitcoin Proof-of-Work Ban

According to documents published by netzpolitik.org, Sweden and the European Union (EU) had discussed the possibility of banning the Bitcoin proof-of-work mining method due to its ill-impact on the environment in a November meeting. They hoped to push bitcoin mining towards a more environmentally friendly substitution like proof-of-stake.

 

As per the German website, the news came to light after lawmakers at the European Parliament were on the verge of imposing restrictions on the energy-intensive bitcoin mining method, which to some was a ban on bitcoin altogether.

 

The documents were reportedly released under the European Union’s freedom-of-information laws.

 

These documents shed light on the occurrences of a meeting held in November. In the meeting, Swedish financial and environmental regulatory authorities and the European Commission’s digital-policy arm talked about banning trading of cryptocurrencies like bitcoin that use the proof-of-work technique.

 

An unidentified attendee of the meeting disclosed that bitcoin mining should be pushed to a more environmentally friendly substitution like proof-of-stake as already adopted by rivals such as Ethereum. The attendee said that they didn’t “see the need to ‘protect’ the bitcoin community.”

 

It is worth noting that parts of the document have been censored to protect individual privacy. Also it is suggested that decision-making process are still ongoing as the policy is still being developed on the topic.

 

This is not the first time Swedish officials have called for a ban on proof-of-work for environmental reasons.

 

The negative impact of Bitcoin mining on the environment have for long been a topic of concern for many. A recent poll held by the Wikimedia Foundation said 71% of users were against accepting cryptocurrency donations, citing environmental concerns.