Faced with the electricity crisis, against a backdrop of tensions with the country’s Serbian minority, Kosovo decided in early January to temporarily ban cryptocurrency mining to reduce energy consumption. A measure that causes panic among minors.
On social networks, some Kosovars are trying to sell their computer equipment dedicated to the activity at discounted prices, reports the Guardian. Some are also trying to move this material to neighboring countries.
To create (mine) cryptocurrencies like Bitcoin, you have to solve complex equations with powerful computers. A very energy-intensive process that rewards people based on the amount of computing power they provide.
The Serb minority in Kosovo, which has not paid for electricity since the end of the 1998-99 war, is particularly targeted by the government.
The approximately 120,000 Serbs who remained in Kosovo after the end of the 1998-99 war remain loyal to Belgrade and do not recognize the authority of Pristina. According to the local media, the energy consumption of this Serbian minority settled in the north of Kosovo costs around 12 million euros per year.
the cheapest energy prices in Europe
Currently, Bitcoin is trading at more than 37,000 euros per unit. Although not in top form, this was a boon for crypto miners in Kosovo, which has the cheapest energy prices in Europe.
However, the country’s energy crisis worsened after a production unit at one of the country’s two power plants broke down. According to The Guardian, this shutdown forced the country to import around 40% of its energy from abroad. The Kosovar government was also forced to provide an emergency grant of 20 million euros to help with the costs.
Immediately after the temporary ban, Kosovo police seized hundreds of computers used to mine cryptocurrency and arrested a member of the Serbian minority.
According to the Ministry of Finance, the confiscated equipment used in electricity the equivalent of the monthly consumption of 500 houses, or between 60,000 and 120,000 euros. “We cannot allow people to enrich themselves illegally on the backs of taxpayers,” he said.
However, some experts have questioned the legality of these police operations, as there is no law in Kosovo regulating the cryptocurrency sector.
Pristina, however, assures that a bill on cryptocurrencies was presented in October to Parliament for adoption before the end of 2021, but that it is still pending.