Cryptocurrency mining systems consume high amounts of energy. In today’s world, where climate change is getting more serious and the transition to renewable energy is progressing strongly, steps are being taken to limit energy consumption in this area. New York Governor Kathy Hochul has banned cryptocurrency miners from using gas and coal to power their operations for two years.The ban could spread across the US
Hochul said the law, signed earlier this week, is “the first of its kind in the country” and is “an important step forward for New York as we work to address the global climate crisis.” The new law specifically targets crypto mining companies to use fossil fuels such as gas and coal to power their operations, but does not affect those that use renewable energy or Ethereum, a blockchain mined using less polluting methods. The law also does not restrain companies that already use gas and coal for crypto mining.Gas and coal power plants struggling to survive in New York City have turned to crypto mining to overcome economic woes and mandates to curb fossil fuel production. It was also mentioned that a gas factory in New York’s Finger Lakes region switched to bitcoin mining in order to recover financially.
On the other hand, the bill was strongly opposed by crypto industry lobbyists. The Verge reports that the Blockchain Association spent $225,000 lobbying to override the bill and tried to dissuade Hochul by donating thousands of dollars to the campaign. On the other hand, it is expected that the law will set a precedent for other US states and similar laws will be enacted across the country.
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