Eliminating benefits for miners in Norway could bring the state more than $14 million in revenue.
Norwegian Finance Minister Trygve Slagsvold Vedum proposed that the government cancel a program that allows data centers mining digital currencies to pay a reduced rate for electricity. The initiative was put forward on October 6, and the official cited the increasing demand for electricity in some regions of the country as the main reason:
“We are in a completely different situation in the electricity market now than we were in 2016, when the benefits for miners were introduced. In many regions, electricity supply is now under pressure from demand, which is driving up prices. We are also seeing an increase in cryptocurrency mining in Norway. We need this capacity to provide electricity to citizens.”
The proposal is also motivated by a recent report on Norway’s national budget for 2023: the finance minister said that taxing miners at standard electricity tax rates could generate more than $14 million in revenue.
Right now, Norway is popular with miners who mine cryptocurrencies using 100% renewable energy and providing 0.74% of the global bitcoin hash rate. However, many locals do not like the impact that miners have on the environment.
As a reminder, Norway has not banned mining.