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Authorities in Manitoba have temporarily suspended the connection of new cryptocurrency mining facilities to the grid. Canada’s provinces, which rely heavily on hydroelectric power and attract cheap miners, fear overwhelming energy demand.
The Manitoba provincial government has suspended new connections between cryptocurrency mining centers and the province’s hydroelectric grid, according to a Canadian news agency. Officials explain the move to the potential for increased energy demand that the region may not be able to meet.
The 18-month moratorium will not affect the 37 mining operations currently in operation, according to an article in the Toronto Star. The measure is intended to stem the growing demand to power new facilities with total capacity equivalent to a significant portion of the state’s electricity supply.
Manitoba Finance Minister Cameron Friesen, head of state-owned company Manitoba Hydro, commented on Monday:
It’s not easy to say, “Well, anyone can take anything.” [energy] They want to rob, so we simply build dams.The last one cost $13 billion if you bid [transmission] line.
Only Quebec offers cheaper electricity, with Canada’s second-lowest electricity rates. Manitoba will attract users with high power needs, such as those involved in extracting energy-intensive cryptocurrencies.
Friesen revealed that 17 new operators have submitted requests to state authorities for a total of 370 megawatts of power. This is more than half of the electricity produced by the Kayask Hydroelectric Power Station, which will start operating in 2022.
The regional finance minister also underscored the concerns of progressive Conservative governments that blockchain businesses may not create many jobs. There is,” he elaborated.
Manitoba Hydro cannot make discretionary decisions about who to connect, emphasized Friesen. A government review is expected to analyze the economic impact of cryptocurrencies and the need for a regulatory framework to approve new large-scale connections to the grid.
Earlier this month, Hydro-Qubec utilities Asked The state’s electricity distribution regulator will suspend energy allocations to the blockchain sector.Manitoba Restrictions Continue With Partial Regulation Enforcement moratorium About proof of work mining in New York, USA.
Do you think other provinces in Canada or states in the United States will impose restrictions on cryptocurrency mining? Share your expectations in the comments section below.
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