What was previously known from washing machines, televisions or refrigerators should soon also be introduced for cryptocurrencies, at least if the EU Commission has its way. BTC-ECHO has a verified internal design in which the executive body will develop an efficiency class system for Bitcoin and Co. by 2025. want to enter. The classification is intended to check the underlying blockchain for sustainability. The Commission still wants to set corresponding minimum standards for energy consumption.
An additional report will also assess the “climate impact of new technologies” on the crypto market. It would also discuss “political options” to weaken environmentally damaging crypto technologies, especially with regard to the consensus mechanism.
It is currently unknown which options these may be. A look at the US, however, provides information on possible steps. In September, the White House called on the domestic crypto industry to cut its greenhouse gas emissions by 50 to 52 percent by 2030. Non-compliance was openly threatened with a Proof-of-Work (PoW) ban. In any case, a similar step is not completely ruled out in the EU.
However, it is more likely that green funds and other sustainable financial products will not be able to include PoW cryptocurrencies such as Bitcoin in their portfolio, an insider tells BTC-ECHO.
The basis for the project is the recently completed EU Crypto Regulation (MiCA). This obliges providers to disclose energy consumption and the impact of assets on the environment. However, the Commission goes one step further with the efficiency class system.
EU member states reduce energy use cryptominers
In addition to the blockchain label, due to the energy crisis, the European Commission is calling on Member States to take measures to reduce the electricity consumption of cryptominers. According to the EU, 10 percent of digital mining activities currently come from Europe. However, there is no source reference.
“Promoting Green Consensus Mechanisms”
At the same time, the European Commission is praising the recent merger of the second largest cryptocurrency, Ethereum. Since the switch to Proof of Stake, energy consumption has been reduced by 99 percent. The process has shown that “the crypto world can become more energy efficient,” says Brussels. In the future, they want to promote “environmentally friendly consensus mechanisms”. They should prevail as the new “gold standard”, they say. Specifically, this should be done through the company’s own blockchain infrastructure.
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