Trygve Slagsvold Vedum, Norwegian Minister of Finance, bitcoin allowing miners to pay a discounted fee for electricity. cryptocurrency urged to uninstall the program.
According to the Minister, current market conditions and the ongoing energy crisis in Europe are the main reasons for this change.
According to Norwegian Finance Minister, Bitcoin Miners Should Not Be Treated Differently
In 2016, the Norwegian government introduced certain energy benefits to data centers, including cryptocurrency miners, by making them pay less for energy than general consumers.
However, according to Finance Minister Vedum, the macroeconomic picture has changed drastically in the last six years, which requires some changes:
“We are currently in a completely different situation in the energy market than it was in 2016 when the reduced tariff for data centers was introduced. In many places, power supplies are under pressure, causing prices to rise.
At the same time, we are seeing a development in Norway where cryptocurrency issuance is increasing. We need this energy of the community. The government will therefore stop the program.”
The minister also claimed that removing the program would create additional income of NOK 150 million (approximately $14 million) for the Norwegian economy.
Currently, the European energy market is under great pressure due to Russia’s limited energy shipments. The COVID-19 pandemic is another factor that aggravates the situation.
Many companies reduced their electricity needs between 2020 and early 2022 (at the height of the epidemic). However, electric generators haven’t been able to keep up with renewed demand in the past few months, causing prices to soar.
*Not investment advice.
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