EU Draft Law Targets Bitcoin Mining
The EU is about to announce a legislative proposal that would restrict the bitcoin mining business while promoting the usage of proof-of-stake-based cryptocurrencies.
Bloomberg reports that the European Union will create an energy efficiency badge for Bitcoin and proof-of-work cryptocurrencies in an attempt to reduce energy use.
According to a draught proposal reviewed by Bloomberg News, the European Commission is collaborating with international partners to develop a grading system intended to “promote more environmentally friendly crypto systems such as proof-of-stake.”
The proposed draught is expected to be issued later today and calls on the world political scene to exert pressure against the energy usage of bitcoin miners. This action against bitcoin miners seems to be a precursor as the EU prepares for winter with diminished Russian gas sources due to the continuing conflict.
“Just as their usage has increased dramatically, so too has their energy consumption,” the executive arm of the EU said in the study.
“In leveraging the usage of cryptocurrencies and other blockchain technologies in energy markets and trade, care must be made to use only the most energy-efficient versions of the technology,” stated the executive arm.
In addition, EU member states will be asked to eliminate tax benefits for bitcoin miners, and in the case of a power outage, countries must be prepared to cease all mining activities.
In addition, a study will be created that examines the potential environmental effect of bitcoin mining by 2025. Fear, uncertainty, and scepticism over Bitcoin’s potential effects on the environment are not new.
The Bitcoin Mining Council, comprised of Micheal Saylor, Jack Dorsey, and Fidelity Investments, sent an open letter to U.S. lawmakers disputing most of the disinformation about bitcoin and energy use.
Following the open letter, Michael Saylor published a report debunking myths about Bitcoin and energy use.
In recent months, the energy consumption story has sought to regain traction, with Greenpeace allocating a new $1 million budget to target Bitcoin and the White House drafting legislation to address the bitcoin mining business.