An executive of the European securities watchdog insisted that the EU should ban proof-of-work crypto mining. The regulator says that coins relying on an energy-intensive method of mining pose a risk to efforts aimed at meeting climate change goals, such as those set out in the Paris Agreement.
Bitcoin mining is now under attack in the EU for burning too much renewable energy
A high-level financial regulator has reiterated a call for an EU-wide ban on cryptocurrency mining based on the proof-of-work concept. The power-hungry model employed in mining Ethereum at this point, along with major cryptocurrencies such as bitcoin, has been blamed for using increasing amounts of renewable energy, reportedly slowing the climate transition in other regions.
Speaking to the Financial Times, European Securities and Markets Authority vice president Eric Theden said that regulators on the old continent should consider banning proof-of-work mining and move the industry towards less energy-intensive proof-of-work. should try. -steak method. According to the ESMA official, this will reduce the huge consumption of electricity.
Theden, who also serves as the director general of Sweden’s Financial Services Authority, said bitcoin mining has become a “national issue” for his country. In November, he and Swedish Environmental Protection Agency chief Björn Risinger singled out proof-of-work mining as the main reason for bitcoin’s high energy use and issued a preliminary call for a ban in the European Union.
“The solution is to ban proof-of-work,” Thaiden has now reiterated, emphasizing that proof-of-stake has a significantly lower energy profile. “We need to discuss how to move the industry to more efficient technology,” the regulator elaborated. However, Thedine was clear that he was not advocating for widespread crypto prohibition.
Cryptocurrency mining has been criticized for its increasing impact on the environment. Last May, China – which had the largest share of the global hash rate at the time – launched a crackdown on the industry following President Xi Jinping’s pledge to achieve carbon neutrality. Miners are working to increase the proportion of renewable energy in the mix powering their hardware. However, as Eric Theden says:
It would be an irony if the wind power generated on Sweden’s long coastline would be devoted to bitcoin mining.
Mining companies are moving to countries with developed wind and solar power generation capacity, such as Sweden and Norway, which are backing the Swedish proposal. Thedine now warns that if officials fail to intervene, a significant amount of renewable energy will go toward shielding digital currencies, rather than helping to steer traditional services away from coal-fired energy sources.
Do you think the EU will answer Sweden’s call and ban proof of work crypto mining? Share your expectations in the comment section below.
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