As part of a recent executive order, the White House Office of Science and Technology Policy (OSTP) has been mandated for a study to establish if digital assets are ecological sound. This executive order was on Ensuring Responsible Development of Digital Assets. The US President signed the Executive Order on March 9 which is a forerunner to forthcoming digital asset and Blockchain legislation, for which many of the people in the sector are apprehensive.
OSTP study for ecological soundness of digital assets
The Executive Order requested the White House Office of Science and Technology Policy to produce a report to the President. This evaluates the potential for digital assets to hamper or advance efforts to combat climate change and the transition to a clean and dependable electrical infrastructure, according to an OSTP announcement.
The requirement for a report from the OSTP is part of the country’s objective of attaining net-zero greenhouse gas emissions by 2050. The deadline to submit the report is May 9, and currently, it is seeking public input on the matter. As a part of its study, OSTP seeks input from interested parties and the general public regarding views on the protocols, resources, hardware, economics, and other elements that determine the energy usage and climate implications of all sorts of digital assets.
Bitcoin was criticized in 2021 for its extraordinarily high power use. However, challenging Bitcoin on its environmental sensitivity is not that straightforward. Electricity is a fossil-fuel-burning industry that accounts for around 40% of CO2 emissions. Since cryptocurrency mining consumes so much power, many see it as a threat to the environment and an unsustainable technology.