Crypto Mining Farms in China and Local Authorities
Crypto mining gained popularity in many parts of the world. However, it consumes a lot of electricity. It is worth mentioning that, authorities of the Chinese autonomous region of Inner Mongolia proposed shutting down all local crypto mining facilities. This they want to reduce energy consumption in the region.
Interestingly, the Inner Mongolia National Development and Reform Commission, or NDRC, released an official proposal. Let’s have a look at the proposal. It suggests closing all virtual currency mining projects by the end of April. Moreover, NDRC proposed a strict ban on cryptocurrency mining projects in the region.
The National Development and Reform Commission will collect public feedback on the draft proposal until Wednesday.
Crypto mining and energy consumption
The autonomous region of Inner Mongolia drew the ire of Beijing after failing to meet energy efficiency goals. It was the only one of 30 mainland areas under Beijing’s energy consumption as well as energy intensity review that failed to meet energy-saving targets in 2019.
Interestingly, as part of the new energy control proposal, the region plans aims to cap its energy consumption growth at about 5 million tons of standard coal equivalent in 2021. Furthermore, the authority plans to cut energy intensity- the amount of energy consumed per unit of economic growth. As a reminder, between 2016 and 2019, energy intensity in the region reportedly. Importantly, the overall energy consumption rose by nearly 65 million tons.
Inner Mongolia gained popularity thanks to its low electricity prices. Nevertheless, local authorities are trying to cope with problems created by crypto mining farms. In 2020, officials considered a new policy preventing crypto miners from using state-subsidized electricity.
Furthermore, authorities issued a notice demanding a clean-up of the province’s mining enterprises in 2019. As can be seen from the information stated above, authorities in Inner Mongolia are struggling to solve this issue. They should cooperate with companies to find the best solution.
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