Bitcoin mining should be prohibited, according to a prominent EU financial regulator.
In a recent interview with the Financial Times, Erik Thedeen encouraged authorities throughout the European Union to implement a blanket ban on proof-of-work (PoW) mining. Erik Thedeen is the vice chair of the Board of Supervisors, the European Securities and Markets Authority (ESMA). He recommended providing preference to proof-of-stake (PoS) which is a more energy efficient consensus technique.
In his view, Bitcoin mining is a roadblock to achieving the Paris Agreement’s climate goals. He further clarified that he is not in favour of outright ban on cryptocurrencies. For the past couple of years, bitcoin has been criticized for its negative environmental effect. China’s ban on its mining has resulted in the use of renewable energy in bitcoin mining. According to a report, the amount of renewable energy utilized for Bitcoin mining grew to 58.5 percent in the fourth quarter.
However, the use of green energy in bitcoin mining is not satisfying its critics. Use of renewable energy in bitcoin mining has made it a national issue in Sweden due to its huge amount of renewable energy used in it. Bitcoin’s power usage is also becoming a difficult issue in the United States, which has just surpassed China as the global highest mining hub as a result of China’s U-turn.
This Thursday, the US House Energy Subcommittee on Oversight and Investigations will conduct a hearing on proof-of-work mining. It also promotes proof-of-stake as a more environmentally friendly option.
