The abolition of incentives for miners in Norway could bring the state more than $14 million in revenue.
Norway’s finance minister, Trygve Slagsvold Vedum, has proposed that the government cancel a program that allows data centers that mine digital currencies to pay for electricity at a reduced rate. The initiative was put forward on October 6, and the official called the increasing demand for electricity in some regions of the country the main reason:
“Now we are in a completely different situation in the electricity market than in 2016, when incentives for miners were introduced. In many regions, electricity supply is now under pressure from demand, driving up prices. We are also seeing an increase in cryptocurrency mining in Norway. We need these capacities to provide citizens with electricity.”
The proposal is also motivated by a recent report on Norway’s 2023 national budget: the finance minister said that imposing standard electricity tax rates on miners could generate more than $14 million in revenue.
Now Norway is popular with miners who mine cryptocurrencies using 100% renewable energy sources and providing 0.74% of the global bitcoin hashrate. However, many locals do not like the impact miners have on the environment.
Earlier, the Central Bank of Norway launched a sandbox for testing the state cryptocurrency.
Source: Bits
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