Cryptocurrency mining also threatens targets to limit global warming to 1.5 degree Celsius under the 2015 Paris Agreement, according to the Swedish Financial Supervisory Authority and the Swedish Environmental Protection Agency.
The most common method for producing crypto-assets requires enormous amounts of electricity and generates large CO2 emissions. “The social benefit of crypto-assets is questionable. The Swedish Financial Supervisory Authority, like other international organisations such as the International Monetary Fund and the US Federal Reserve Board, considers that there are aspects of crypto-assets that are problematic,” Erik Thedeen, director of the Swedish Financial Supervisory Authority, said in an open letter.
“Crypto assets also have a significant negative impact on the climate as mining leads to both large emissions of greenhouse gases and threatens the climate transition,” Thedeen added.