The White House has proposed setting standards for the crypto mining industry to reduce its environmental impact.
and report The White House called for criteria such as miners using clean energy and the need for low energy intensity, titled The Climate and Energy Impact of Crypto Assets in the United States.
The report is the result of President Biden’s executive order on crypto earlier this year. It was led by the White House Office of Science and Technology Policy (OSTP).
crypto mining standards
This report focuses primarily on establishing standards for cryptocurrency miners and recommends several measures to limit the energy consumption of proof-of-work mining.
We also emphasized minimizing other noise, emissions, and water impacts. We encourage technical assistance from the Department of Energy (DOE) and the Environmental Protection Agency (EPA).
Meanwhile, the report went a step further by recommending the possibility of restricting or banning cryptocurrency mining if measures fail to prevent its adverse effects.
If these measures prove ineffective in mitigating impact, the administration should consider enforcement action and Congress will restrict the use of high-energy intensity consensus mechanisms for cryptocurrency mining. Or we may consider a law to exclude it.”
The report does not mention proof-of-work mining, but mentions a high-energy-intensity consensus mechanism.
The report also highlights the high energy consumption of crypto mining, stating that the energy generation of major crypto assets is:
Together, it represents 140 million tonnes of carbon dioxide (Mt CO2/y) annually, or about 0.3% of global annual GHG emissions.
In addition to regulating cryptocurrency mining for environmental purposes, the White House also wants grid operators to ensure that cryptocurrency mining does not affect grid stability.
Crypto miner innovation
The report acknowledges innovation on the minor side. It mentioned miners using flare methane in their machines and how this is positive for the climate.
It also called on the mining industry to provide better data demonstrating its use of clean energy, encouraging miners to build zero-carbon energy capacity that generates more electricity than cryptocurrency mining facilities require. Said it could be volunteered or requested.
Is cryptocurrency mining harmful to the environment?
However, this report may overemphasize the environmental impact of cryptocurrency mining.
In reality, cryptocurrency mining is responsible for only a tiny fraction of global emissions. Most big companies use far more energy than Bitcoin (BTC).
For example, according to some reports, Amazon has underreporting Calculate its carbon footprint by accounting for only about 1% of the products you sell online.
Still, we emitted 71.54 million tons last year.Besides, other financial assets such as gold and fiat currency are even bigger Contributor to the emission level.