The White House Office of Science and Technology Policy (OSTP) has proposed banning Bitcoin mining to reduce the greenhouse effect.
The White House has recommended that mining be “eliminated” if new measures do not reduce carbon emissions.
White House Office Recommends Banning Mining
The White House Office of Science and Technology Policy (OSTP) has authored a report that analyzes the links between distributed ledger technologies and climate change.
The office stated that the crypto industry’s relationship with the environment is mixed. Although it is accepted that Bitcoin mining has a positive effect on grid stability and renewable energy, it was emphasized that it can increase environmental problems due to greenhouse gas and other factors.
For these reasons, the office stated that banning the proof-of-work consensus algorithm should be considered.
Are Cryptocurrencies Threatening the Environment?
The report, titled “Climate and Energy Impacts of Crypto Assets in the United States,” is a response to the March executive order of US President Joe Biden. Biden had requested reports on various crypto-related topics to regulate the crypto industry.
OSTP underlined that crypto assets could hinder US efforts regarding climate commitments and goals.
The report noted that a significant amount of electrical power is used, especially in Bitcoin mining. Bitcoin and other crypto-assets using the PoW algorithm only account for 3% of global greenhouse gas emissions.
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