Manitoba suspends new cryptocurrency operations, citing high energy demand

Photo: The Canadian Press

Manitoba Finance Minister Cameron Friesen is sworn in at the Manitoba Legislative Building in Winnipeg on Jan. 18, 2022.

The Manitoba government is temporarily halting any new connections of cryptocurrency operations to the hydroelectric grid.

Finance Minister Cameron Friesen, the minister responsible for Crown-owned Manitoba Hydro, says there will be an 18-month pause pending a review of the industry's energy demands.

The technology that underpins cryptocurrencies — blockchain — requires a large amount of electricity to run complex financial transactions.

The move will not affect the 37 current operators in the province, which Friesen says use a relatively small amount of power.

He says there have been recent requests from another 17 operators that would require 371 megawatts of power — more than half the power generated by the recently completed Keeyask generating station.

Hydro-Québec announced earlier this month that it would ask regulators to suspend its energy allocation process to the blockchain industry.