Bitcoin Prohibition Outside EU Crypto-Centric MiCA Bill on Importance of Green Mining

In another important decision that shapes the crypto industry, the European Union (EU) has rejected proposals to ban Bitcoin mining and trade. A majority of EU members voted against banning energy-intensive activities in Bitcoin, and rooted the process in facilitating the environment and making it greener. The name of the EU crypto-centric bill is Markets in Crypto Assets (MiCA). Once approved by the EU Parliamentary Committee, MiCA is awaiting the EU executive arm and the contributions of the Member States to make it a law. The framework is largely focused on consumer protection and market manipulation and financial crime prevention in the cryptography sector.

The EU’s Economic and Monetary Affairs Committee has renewed its MiCA bill by adding a “minimum environmental sustainability standard” for retaining cryptocurrencies.

The Bitcoin mining process consumes a lot of energy, overloads the city’s electricity grids, and adds to the carbon emissions that affect the environment.

Cryptocurrencies like BTC are created in advanced computers, which are necessary to solve complex proof-of-work algorithms. These machines need to be connected at all times, which takes up large chunks of electricity.

The EU bill seeks to add credit to cryptocurrencies, depending on how sustainable they are.

The Commission has approved another proposal to define whether cryptography can be seen as a sustainable investment. If approved, it could be added to the EU taxonomy for sustainable financing of cryptocurrency mining, a Bloomberg report said.

Although MiCA has not received any information from other EU-related entities, industry has assessed the EU’s overall view.

“The EU should not ban crypto proof work like Bitcoin and instead propose to include it in the classification system for sustainable mining activity of cryptocurrencies as a‘ innovation-friendly ’approach to crypto laws by 2025,” said Rohas Nagpal of Gadgets 360. Nagpal. He is the author of the Crypto Playbook and the Chief Blockchain Architect for Hybrid Finance (HyFi) Blockchain.

The development has also garnered applause from investors among business tycoons like Michael Saylor on Twitter.

The energy impact of crypto mining has been worrisome among many nations.

According to Cambridge researchers, Bitcoin mining consumes about 121.36 terawatt-hours (TWh) of energy per year.

The regions of Iran, Kazakhstan, Kosovo, Sveneti and Irkutsk have had to take drastic steps to control their cryptographic mining activities.

In January 2022, industry experts presented their testimony to the U.S. Household Energy and Commerce Subcommittee proposing other ways to boost cryptographic mining operations.

Some regions of the world are already working to make BTC mining more energy efficient.

Nayib Bukele, President of El Salvador, explained his plans to build the Bitcoin City at the base of the Conchagua Volcano, to feed Bitcoin mining with renewable energy and to address the carbon footprint problem associated with the process.

Miami Mayor Francis Suarez has also proposed setting up a Bitcoin mining facility next to a Florida nuclear power plant. According to a report by Latest News Today, nuclear energy is on the verge of being recognized as a true environmental, social and corporate governance (ESG) solution in terms of energy.

However, the latest findings from the CoinShares research platform show that Bitcoin mining contributed only 0.8 percent of all global carbon dioxide (CO2) emissions and that about 60 percent of Bitcoin mining activity is fueled by fossil fuels.

Source link


Welcome to India's Largest news platform, I assure you that we daily update on Global news which helps you to grow your knowledge.

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button