Kosovo Bans Cryptocurrency Mining Amid Energy Crisis

Cryptocurrency mining is a highly energy intensive process, often  requiring more electricity consumption than what is used by entire  countries.

And so as is to be expected, its impact on climatic changes has been a hotly debated concern over the past year.

While mining may be just one of the myriad of methods available  to validate cryptocurrency transactions and mint new crypto coins –  it’s the method used by Bitcoin and other leading cryptocurrencies –  automatically making it the most widely used process out there.

FX Empire also notes with statistical data: The University of Cambridge  estimates that Bitcoin (BTC) mining alone consumes about 121.36  terawatt-hours (TWh) per year, just a little shy of the 124.12 TWhs that  made up Norway’s total energy consumption in 2019.

Coming to Kosovo, the Republic of Kosovo has transformed into a hotbed for cryptocurrency  mining by the end of 2021, with tech-savvy entrepreneurs making use of  the free electricity in the regions of Leposavic, Mitrovica, Zubin Potok  and Zvecan.

However, on account of the electricity shortages faced during the winter  season, the country’s Minister of Economy, Artane Rizvanolli, banned  crypto mining this Tuesday.

The move came as an attempt to tackle with the worst energy crisis in Kosovo in a decade. Reportedly, the ban was imposed on the recommendation of the Technical Committee on Emergency Measures for Energy Supply.

Late last year, the government declared a state of emergency for 60-days  to enable the reallocation of funds to energy imports. The move also  allows the government to rollout more power cuts and take steps to curb  energy consumption.

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Kosovo Bans Cryptocurrency Mining Amid Energy Crisis