Could the EU Ban Bitcoin to Meet Energy Goals?

May perchance per chance per chance the EU Ban Bitcoin to Meet Energy Dreams?

Social media X is abuzz with hypothesis on whether Proof-of-Work (PoW) consensus networks, esteem Bitcoin, will possible be banned within the European Union (EU) following the open of a draft review by the European Comission and the European Central Bank (ECB).

Daniel Batten, a managing companion at CH4 Capital, shared on his X (previously Twitter) profile that the ECB and European Securities and Markets Authority (ESMA) had been assigned to craft the memoir.

The EU’s Stance on Bitcoin Energy Consumption

In a screenshot Batten shared, the EU memoir items an alarming review of Bitcoin and diversified PoW blockchain protocols. Suggesting a which that it’s possible you’ll furthermore recount ban on Bitcoin and its mining processes within the declare, the diagnosis highlighted that they’re environmentally corrupt attributable to their excessive strength demands.

The memoir added that this unsafe mining process could perchance perchance perchance threaten the EU’s strength security. These current remarks tie into a 2023 ‘eTender’ submission titled ‘Growing a Methodology and Sustainability Requirements for Mitigating Environmental Impacts of Crypto Assets.’

🧵While we had been sleeping, the European Price (by approach of ESMA & ECB) has been developing a memoir which they knowing to model bitcoin
-environmentally corrupt
-a threat to EU strength security
-a haven for monetary criminals

Paving the formula for 2025 de facto EU bans on BTC & BTC mining pic.twitter.com/Zj9er7E4V9

— Daniel Batten (@DSBatten) January 31, 2024

The eTender memoir notorious that the surge in crypto asset mining generates detrimental financial and social consequences. Furthermore, its persistent exhaust could perchance perchance perchance hinder the declare’s sustainability wishes in step with the Paris Settlement.

Hence, eTender would focal point on providing actionable steps to mitigate the impact of cryptocurrency mining and make particular sustainability requirements.

Sharing its expected measures, the EU Price revealed that it would stage a carbon tax on crypto mining. This is also based on the network’s consensus mechanisms and which that it’s possible you’ll furthermore recount environmental impacts. The endgame is to coerce miners to lower their mining activities or kill them solely.

Totally different measures consist of granting EU bloc participants the authority to ‘shut off’ crypto mining for strength security at any time. Bitcoin mining will furthermore be formally labeled as ‘corrupt to the environment,’ and the EU will devise formula to disincentivize institutional funding in Bitcoin.

According to Batten, Bitcoin is expected to be designated as a ‘haven for monetary criminals, ‘ making it even less appealing to prospective investors.

May perchance per chance per chance EU Measures Be Adopted Worldwide?

According to Batten, the EU’s crypto asset’s doable mining ban is just not any longer expected to be siloed to the declare again. The ESMA and the ECB hang reportedly revealed that if the ban is legalized within the EU bloc, they’ll push for it to be current in diversified regions.

If the invoice is enacted, this switch could perchance perchance perchance scrutinize Bitcoin mining capitals esteem the US finish down publicly listed Bitcoin mining firms esteem Stand up Blockchain.

3/5

I’m no longer in EU, who cares?

ESMA, who work carefully with ECB (Euro Central Bank), has signalled that as soon as the memoir is current in EU, they’ll push for it to turn into the fashioned in diversified countries

Love diversified wars, this battle starts in EU nevertheless could perchance perchance perchance furthermore no longer kill there.

— Daniel Batten (@DSBatten) January 31, 2024

The outrage surrounding Bitcoin’s mining electrical energy demands is just not any novel discourse within the crypto attach. The PoW blockchain network reportedly consumes extra electrical energy than a tiny-sized nation.

Industry practitioners and experts hang largely supported this investigate cross-test, alternatively, which resulted in the formation of the Bitcoin Mining Council (BMC).

The BMC is targeted on transitioning the flexibility demands of the PoW protocol to a extra environmentally friendly option. To this point, they’ve been a success.

According to a K33 Learn, Bitcoin miners strength their operations with an estimated 58% renewable strength sources. Here’s three situations elevated than the realm’s life like.

Since #Bitcoin miners hang financial incentives to exhaust renewable strength, their sustainable strength combine is estimated to be 58% – nearly three situations elevated than the realm life like.

Learn extra in our weekly market memoir: https://t.co/tj905x0elW pic.twitter.com/D2kI4f8Nj1

— K33 Learn (@K33Research) October 29, 2021

Which implies that Bitcoin mining will turn into greener by the yr.

Source : cryptonews.com