Erik Thedéen, director of the Swedish Financial Supervisory Authority, and Björn Risinger, director of the Swedish Environmental Protection Agency, said cryptocurrency's rising energy usage is threatening Sweden's ability to meet its obligations under the Paris Climate Agreement.
Between April and August this year, the energy consumption of Bitcoin mining in the Nordic country rose "several hundred per cent," and now consumes the equivalent electricity of 200,000 households, Thedéen and Risinger said.
In an open letter, the directors of Sweden's top financial and environmental regulators called for an EU-wide ban on "proof of work" cryptocurrency mining, for Sweden to "halt the establishment" of new crypto mining operations and for companies that trade and invest in crypto assets to be prohibited from describing their business activities as environmentally sustainable.
The growth of crypto mining brings with it an opportunity cost, Thedéen and Risinger said, as Sweden's renewable energy is diverted away from industrial, transport and domestic uses, and into Bitcoin and other tokens.
"It is currently possible to drive a mid-size electric car 1.8 million kilometres using the same energy it takes to mine one single Bitcoin,” they said.
“This is the equivalent of forty-four laps around the globe. 900 bitcoins are mined every day. This is not a reasonable use of our renewable energy".