Iceland PM Call for Adoption of New Rules Promoting Food SecurityOver Bitcoin Mining

Iceland PM Call for Adoption of New Rules Promoting Food Security Over Bitcoin Mining

As crypto positions itself as a buzzword in the vibrant finance sector, the legislators in Iceland are contemplating taking a different route. In a recent interview with the Financial Times, the prime minister of Iceland, Katrín Jakobsdóttir, confirmed that the country will focus on improving food security.

The PM explained that the biting inflation and economic crises forced Iceland to invest more in planting corn to ensure the country had adequate foodstuff.

Iceland Set to Adopt New Rule on Bitcoin Mining

The PM argued that to attain the desired food security, Iceland must revise the existing regulations for Bitcoin mining. This implies that if the new rules take effect, the Iceland legislators will take restrictive measures to regulate Bitcoin mining.

Reflecting on a recent protest in Iceland, Jakobsdóttir argued that it was important for the European country to reduce overdependence on imports. A few days ago, the Iceland farmers urged the government to consider supporting the local companies in increasing food production.

For years, Iceland has relied on imports from France and the Netherlands. The overreliance on exports in the European Union forced the authorities to impose stringent climatic rules on some industries.

This development compelled the Dutch government to take immediate action and suspend the operation of farms to promote compliance with EU carbon emission rules. The EU rule on the emission of greenhouse gases mirrors a similar proposal from Iceland that could lead to the killing of 200,000 cattle.

Iceland Calls for Adoption of Policies Promoting Food Security

Even though a large portion of Iceland is covered with glaciers, the executive restated that it was important for the country to focus on improving food security. The PM admitted that the unfavorable environment in Iceland led to low production of food due to low temperatures.

The sharp decline in production forced the legislators to introduce a farm-funding model. The PM’s proposed regulation ignited heated debates among the Bitcoin miners in the country.

Iceland has been considered a suitable location for Bitcoin mining activities for years. The suitability of Iceland’s Bitcoin mining sector has attracted foreign investment in the region.

Also, Iceland ranks among the leading countries with the largest production of energy per capita globally. The strategic location of Iceland enables the government to maximize energy production through renewable energy sources.

The availability of clean energy in Iceland motivated the renowned Bitcoin miners to expand to the region. This significant move positioned Iceland among the countries with the highest Bitcoin hash rate producer.

Iceland Government to Restrict Bitcoin Mining

In her statement, Jakobsdóttir plans to impose restrictive measures to reduce Bitcoin mining activities. The official noted that the Bitcoin miners in Iceland have turned the island into a data center haven.

In his proposal, Jakobsdóttir underlined the need to shift the energy used in Bitcoin mining to households and other industrial uses. He believes that the energy used in Bitcoin mining could power around 375,000 households.

With the growing popularity of crypto, Jakobsdóttir stated that other market players issue Bitcoin. He regretted that most of the energy used in Iceland is channeled to Bitcoin mining activities.

Citing a new bill on energy, the legislator confessed that the Iceland government seeks to increase the power generated by wind. Under the new bill, legislators argue that the increase in green energy will support the industry in producing zero-carbon products.

After thoroughly reviewing the new bill, the executive regretted that Bitcoin and crypto were not part of the plan. He regrets that Bitcoin mining consumes a lot of energy.

The availability of cheap and adequate hydroelectric energy motivated fast-paced data centers and Bitcoin miners to expand to the Arctic region. Reflecting a recent study from a renowned research firm, Luxor Jakobsdóttir noted that several Bitcoin mining facilities consume roughly 120MW, which is sufficient to power several homes.

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