Foto: Monede virtuale (Pexels / Roger Brown)
Kosovo’s government has banned the production of cryptocurrencies in the country as a measure to curb electricity consumption amid the country’s worst energy crisis in a decade, reports EFE, cited by Agerpres.
The decision was announced by Kosovo’s Energy Minister Artane Rizvanolli on the recommendation of a committee of experts, according to the digital daily Koha.
The minister stressed that the authorities will identify localities suspected of mining cryptocurrencies, a financial instrument that requires a high energy consumption to create.
Due to low energy prices in Kosovo and high unemployment of 26%, many young people have found an opportunity in cryptocurrency mining.
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But a series of breakdowns at Kosovo’s aging power plants and high energy import prices have prompted authorities to impose a series of supply cuts.
At the end of December, Kosovo declared a 60-day energy emergency, with the possibility of an extension for another 30 days, amid its worst crisis in 10 years due to electricity shortages and instability in the generation and distribution system.
In addition to global market prices and breakdowns, consumption has also increased due to cold temperatures, with a large proportion of the population using electric heating.
According to estimates as of December 2021, around 10,000 people or operators in Kosovo are working with cryptocurrencies, but there are no precise figures or data on the value of transactions.
Digital coin mining has also increased in northern Kosovo, an area populated mostly by Serbs who do not recognise the Kosovar state and refuse to pay for electricity, EFE adds.
