EU securities regulator calls for proof-of-work crypto mining ban

Erik Thedéen, the vice-chair of the European Securities and Markets Authority has raised considerations over the rising use of renewable vitality for Bitcoin mining.

In a latest interview with the Financial Times, Thedéen stated that Bitcoin (BTC) mining has develop into a “national issue” and warned cryptocurrencies might pose a threat to local weather change objectives. 

He known as upon European regulators to take particular exception to proof-of-work mining which is primarily utilized by Bitcoin and some different forked altcoins. He additionally advocated for proof-of-stake as a greater, energy-efficient various:

“We need to have a discussion about shifting the industry to a more efficient technology.”

Melanion Capital, a Paris-based various funding agency, has addressed the rising name for a ban on PoW mining again in November 2021, known as it “completely misinformed”

The funding agency stated that because of the decentralized nature of Bitcoin, there isn’t a foyer or group to defend its pursuits, which “should not be taken as an opportunity to implement measures rendering illegal an industry for its lack of defensive powers.”

Related: Swedish call to ban crypto mining ‘completely misinformed,’ says fund manager

The Bitcoin community’s vitality utilization was one of the controversial matters in 2021 that noticed the likes of Elon Musk, Jack Dorsey and Michael Saylor interact in a number of debates. Tesla even discontinued the Bitcoin payment option citing the Bitcoin community’s vitality utilization. However, in contrast to Thedéen, many of the critics till now had no situation with clear vitality utilization. Musk has claimed that if 50% of the Bitcoin network’s energy comes from renewable sources, Tesla would rethink including a Bitcoin fee choice.

China’s Bitcoin mining ban in May final yr turned out to be a boon for the ecosystem, because it not solely disintegrated the extremely centralized Bitcoin mining business, it additionally helped in shifting towards renewable energy usage. According to the Q3 report from Bitcoin Mining Council, renewable vitality utilization by the Bitcoin community reached 58% by the third quarter of 2021.

Global Sustainable Energy Index Source: BMC Report