European Commission Hints on Halting Crypto Mining Due to Digitalizing Energy Sector

Pursuant to the plans to digitize the energy sector in the European Union, the Commission has warned members to be ready to halt crypto mining. On the 18th of October, the Commission revealed an Action Plan on how evolving technologies can improve energy use. According to the announcement, the scheme will also save costs for EU consumers and energy companies. Also, it will aid the integration of renewables into the grid.

The European Commission discussed the need for an intense energy system transformation to activate the European Green Deal and the REPowerEU Plan. Energy Commissioner Kadri Simson revealed that the purpose of digitalizing the energy sector is to make the system more efficient. He added that the aim is also to make the energy system available for an increasing share of renewable energy. The group plans to engage in international collaborations apart from targeting crypto mining. This will help in reaching the targeted level of energy use in the European Commission.

European Commission Plans on Stopping Crypto Mining

Now, the European Commission is preparing the minds of EU members to be ready to stop crypto mining “in case there is a need for load shedding in the electricity systems.” This means that crypto miners in the European Union’s member states may be asked to stop mining operations in specific locations. With the latest update, many countries under the European Commission are now aware to prepare to reduce the electricity usage for crypto mining.

Notably, the Russia vs. Ukraine war is also mounting pressure on energy supplies in Europe. These factors are the primary triggers why the European Commission is telling members to be ready to halt crypto mining. The group stated:

“The Russian invasion of Ukraine and current high energy prices have increased the need for the EU to achieve its independence from Russian fossil fuel imports and its strategic sovereignty and security, which can be boosted by the creation of a digital energy system. Increasing the digitalisation of the EU’s energy system is also essential to achieve the EU’s 2030 and 2050 climate targets in a cost effective way.”

Furthermore, the European Commission proposed introducing a rating system for crypto assets. The grouping will be based on their impact on the environment within the European Union. Classifying these cryptocurrencies is part of the European Green Dal, which attempts to achieve climate goals. Separately, the Commission mentioned the Ethereum Merge as some of the changes the blockchain is experiencing. Notably. The Ethereum ecosystem recently moved from a Proof-of-Work (PoW) mechanism to Proof-of-Stake (PoS).