Kosovo imposes bans on cryptocurrency mining for saving electricity

Kosovo's government has recently imposed a ban on cryptocurrency mining to limit electricity consumption nationwide. Due to production outages, the country has faced the worst energy crisis in the last ten years.

Artane Rizvanolli, Economy and Energy Minister cited that all law administration agencies would halt the production of crypto mining in collaboration with other appropriate institutions that will identify the locations where there is cryptocurrency production.

The youth population in Kosovo had started working in cryptocurrency mining due to Kosovo's cheap power prices in recent years.

Faced with outages of the coal-fired power plant and quite high import prices, the federal authorities were forced to introduce power cuts last month.

Recently, the gas prices in Europe surged by 30% after low supplies from Russia revived concerns regarding energy crunch as the winter season approached.

In December, Kosovo announced a state of emergency for 60 days, enabling the government to offer more money to energy imports and introduce harsher measures and power cuts.

As per credible sources, one miner, who has 40 GPUs (Graphics Processing Units) quoted that he was paying around EUR 170 for electricity per month and is getting about EUR 2,400 per month in profit from mining.

Coin mining has been gaining huge traction in northern Kosovo, mostly inhabited by Serbs who do not know the state of Kosovo and refuse to pay electricity.

The 1.8 million people of the country are now importing more than 40% of its consumed energy owing to the high demand, especially during the winters when electricity is used mostly for heating.

Imperatively, around 90% of energy production in Kosovo comes from igniting soft coal, which produces toxic pollution when burnt.

According to the official figures, Kosovo has the world's fifth-largest ignite reserves of 12-14 billion tons.

Source Credit - https://gadgets.ndtv.com/cryptocurrency/news/cryptocurrency-mining-ban-kosovo-save-electricity-artane-rizvanolli-2689667