FameEX Hot Topics | Iceland's Prime Minister Pledges to Focus on Food Security Instead of Bitcoin

Iceland's Prime Minister, Katrín Jakobsdóttir, has pledged to shift the country's focus towards boosting internal food production and reducing the energy consumed by data centers and Bitcoin mining operations. This move comes as part of Iceland's broader effort to achieve carbon neutrality, with Jakobsdóttir emphasizing that Bitcoin and other cryptocurrencies, known for their high energy usage, do not align with this environmental goal.

In discussions with the Financial Times, Jakobsdóttir critiqued the significant energy demand of Bitcoin mining and expressed her intention to redirect some of this energy towards enhancing Iceland's food sovereignty. She argued that the renewable energy resources of Iceland, a country with a population of 375,000, should be more strategically used to support its citizens rather than to mine cryptocurrencies.

The Prime Minister's stance is underscored by challenges faced by the country's hydroelectric plants during winter, leading to a reliance on less environmentally friendly energy sources for food processing. This has been deemed "unacceptable" by Iceland’s Environment Minister, Guðlaugur Þór Þórðarson, highlighting a need for energy reallocation. Jakobsdóttir also touched on the inherent challenges of agriculture in Iceland, pointing out the harsh conditions for farming yet emphasizing its critical role in the nation's security and safety strategy. With Bitcoin miners and data centers in Iceland consuming over 120 MW of energy—surpassing the energy use of all residential homes—she advocates for a significant policy shift.

Although specific methods or regulations for this transition were not detailed, Jakobsdóttir mentioned pioneering efforts to cultivate crops like corn, which has not been attempted previously in Iceland but is now considered technically feasible.

This policy shift aligns with actions taken in December 2021 by Landsvirkjun, Iceland's national power company, which began turning down energy requests from new cryptocurrency mining ventures due to distribution system constraints. Jakobsdóttir's vow marks a significant turn in Iceland's engagement with the cryptocurrency sector, emphasizing the prioritization of environmental sustainability and food security over the energy-intensive demands of Bitcoin mining.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.