The outcome of today’s vote in the European Parliamentary Committee on markets in crypto assets will determine the legal status of Bitcoin mining in the European Union (MiCA).
After earlier being removed, a controversial line about crypto mining’s “minimum environmental sustainability” has been returned. The new line would compel blockchain operators to submit a rollout strategy outlining how they intend to achieve environmental sustainability. Failure to submit a plan could result in coins being banned from being mined or sold in the European Union.
Although it is not stated explicitly, the measure would have a direct impact on proof-of-work (PoW) chains. The Bitcoin network, Ethereum, and a number of other crypto assets use the PoW consensus algorithm.
However, Bitcoin (BTC) is decentralised, no rollout plan can be produced in its name. The lack of such a plan could continue functioning of Bitcoin mining operations across the EU.
According to an estimate published by Frankfurt School in November, the Bitcoin network consumed 90.86 terawatt hours (Tw/H) of energy yearly as of August 2021. This amounts to around 0.05% of total global consumption. Though these figures are difficult to determine correctly, the network is responsible for just about 0.08 percent of total global carbon emissions.
French member of parliament Pierre Person warned that a prohibition on mining would drive talent and innovation out of the region. He said in a Saturday tweet that by banning Bitcoin and Ether (ETH), and “complicating the use of NFT and DeFi, the European Parliament is mortgaging our monetary and financial sovereignty.”
Pierre Person, a member of the French parliament, cautioned that prohibition on mining would drive ability and innovation out of the region. In a Saturday tweet, he claimed that the European Parliament is “mortgaging our monetary and financial sovereignty” by prohibiting Bitcoin and Ether (ETH) and “complicating the use of NFT and DeFi.”
If the bill is passed as, Ethereum will be out of the picture for a long time. The Ethereum 2.0 “Merge” is projected to be completed this year, transforming the network into a proof-of-stake (PoS) network that does not require actual mining equipment to attain network consensus. However, Bitcoin miners may face more consequences.
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