government: The production of a cryptocurrency consumes as much electricity 19 HOUSES

Days ago, the Government of Kosovo took a decision to stop the production of cryptocurrencies in our country, due to the energy crisis.

Regarding this decision, The Government of Kosovo in a response to the Telegraph said that the decision was taken based on the recommendations of the Technical Committee for "Emergency measures in energy supply".

The Technical Committee for "Emergency measures in energy supply" has given some recommendations, two of which have entered into force through the decision of the date 31 December 2021. This decision has included the recommendations of the Technical Committee for the cessation of the production of cryptocurrencies throughout the territory of the Republic of Kosovo, as well as the technical recommendation regarding the use of energy provided by the Republic of Albania for the end-of-year holidays ”, it is stated in the response of the Government of Kosovo.

The Government further stated that in 2021 electricity consumption has increased significantly, and that one of the factors driving consumption growth is believed to be the production of cryptocurrencies in the country, with particular emphasis on the north of the country, where due to non-payment of electricity, cryptocurrency production is considered to be the highest in the country.

"The production of cryptocurrencies consumes significant amounts of electricity. As for illustration, production of a cryptocurrency, considering conservative figures, consumes energy as afro 19 average Kosovar house per year. This without taking into account the factors of more specialized equipment which process data faster and consequently consume more energy, large spaces and equipment to cool equipment that works all the time, etc.. This whole process consumes enormous electricity, whose import is currently being partially subsidized by the Government of the Republic of Kosovo. For more, this activity does not lead to the employment of labor force, as well as cryptocurrency producers do not pay taxes for this activity in the Republic of Kosovo, as this activity is not regulated by law ", stated in their response.

The Government has announced that the Technical Committee taking into account the above facts and the local situation caused by the global energy crisis, has recommended to the Minister of Economy to take a decision to terminate the activity in question.

"Following the recommendations of the Technical Committee, Minister Rizvanolli has taken a decision on emergency measures to face the energy crisis where the production of cryptocurrencies in the country is banned. Identification of production locations and termination of these activities will be done by law enforcement agencies in close cooperation with relevant institutions of the energy sector. The decision on emergency measures to deal with the energy crisis remains in force until the next decision is made., based on the recommendations of the Technical Committee when it is assessed that the energy situation has stabilized, which repeals the precedent ", stated in the Government's response to the Telegraph.

On the decision of the Government of Kosovo to ban the production of cryptocurrencies, the world media have also written.