Cryptocurrencies – FinanceBrokerage
Crypto mining has become increasingly popular in many parts of the world. However, it consumes a lot of electricity. It is worth noting that Inner Mongolia Autonomous Region authorities have proposed closing all local crypto mining facilities. In doing so, they want to reduce energy consumption in the region.
Interestingly, the Inner Mongolia National Development and Reform Commission (NDRC) has published an official proposal. Let’s take a look at the proposal. It is proposed that all Virtual Currency Mining projects be completed by the end of April. In addition, the NDRC proposed a strict ban on cryptocurrency mining projects in the region.
The National Development and Reform Commission will seek public feedback on the draft proposal by Wednesday.
Crypto mining and energy consumption
The Inner Mongolia Autonomous Region drew Beijing’s wrath after failing to meet its energy efficiency targets. It was the only one of 30 mainland areas as part of Beijing’s energy consumption and energy intensity review that failed to meet its energy saving targets in 2019.
Interestingly, as part of the new energy control proposal, the region plans to limit energy consumption growth to around 5 million tons of standard coal equivalent in 2021. In addition, the agency plans to reduce energy intensity – the amount of energy consumed per unit of economic growth. As a reminder: Between 2016 and 2019, the energy intensity should be in the region. It is important that the total energy consumption has increased by almost 65 million tons.
Inner Mongolia gained popularity thanks to its low electricity prices. Even so, local authorities are trying to cope with the problems caused by crypto mining farms. In 2020, officials considered a new policy preventing crypto miners from consuming government-subsidized electricity.
In addition, in 2019 authorities called for a cleanup of the province’s mining companies. As can be seen from the above information, the authorities in Inner Mongolia are making efforts to resolve this issue. You should work with companies to find the best solution.
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