New York state and Kosovo have both banned cryptocurrency mining in an effort to save electricity. Some believe that mining cryptocurrency will supplant renewable energy, thereby increasing the consumption of fossil-gas-fired power. While the governor has not officially pledged to sign the legislation, Mayor Eric Adams has asked him to veto it. Others believe that methane from oil and gas drilling will be diverted to Bitcoin mining power plants, further contributing to the increase of fossil-gas-fired power.
Kosovo bans cryptocurrency mining to curb electricity consumption
In an effort to combat a potential energy crisis, Kosovo has banned cryptocurrency mining as a way to control its electricity consumption. The move follows China’s ban on cryptocurrency mining. In the wake of recent protests and the resignation of its Economy Minister, Artane Rizvanolli, Kosovo has banned cryptocurrency mining as a way to curb its electricity consumption. It is unclear how many people are affected by the ban.
The decision was made after years of rising energy prices in Kosovo and its neighbors, which are resulting in widespread blackouts throughout the country. Due to the severe lack of control over the country’s energy supply and the slumping economy, Kosovo is facing a critical situation. The government’s decision to ban cryptocurrency mining is aimed at reducing the nation’s electricity consumption and saving the country money on imported gas and power. However, it is unclear how it will address the issue and how it will be resolved.
China bans cryptocurrency mining to save electricity
The recent crackdown on cryptocurrency mining is a reaction to a booming industry that consumes a large amount of electricity. The province of Jiangsu has been targeting cryptocurrency miners in an effort to conserve electricity. The province’s communications authority says one-fifth of all IP addresses connected to mining activities are illegal. The province estimates that cryptocurrency mining consumes around 260,000 kilowatt hours of electricity each day.
The Chinese government has already limited the number of bitcoin mining operations in coal-rich regions. But the ban also effected mining operations in areas with higher electricity costs. Some miners fled to safer havens abroad, while others continued mining, spiking global consumption back up to 98 TWh in June. Fortunately, the ban is only temporary. China has a long way to go before it meets its carbon neutrality targets, and the ban on cryptocurrency mining is one step in that direction.
New York state bans cryptocurrency mining to save electricity
Hundreds of lobbyists are fighting New York state’s proposed ban on cryptocurrency mining. Many say it’s an unnecessary moratorium that will stifle the cryptocurrency industry, whereas others argue that it’s an essential step towards electrifying New York buildings and cars. In addition, some say the ban will do nothing to help the environment, despite the fact that some cryptocurrency miners have already moved to alternative energy.
The cryptocurrency industry is quickly growing, and as a result, New York is facing a massive energy challenge. The state’s governor has yet to decide whether to sign the bill or veto it. But the state has already passed landmark environmental goals that put digital currency mining at odds with its climate targets. New York recently passed landmark climate goals, including a goal of reducing carbon-based emissions by 85 percent by 2050.
European Union opposes cryptocurrency mining
A recent vote in the European Parliament dropped a proposed rule that would prohibit energy-intensive cryptocurrency mining processes. Cryptocurrency mining processes generate large amounts of greenhouse gases and could be problematic for a country like Sweden where power supply can sometimes exceed demand. Moreover, a ban on cryptocurrency mining could increase carbon emissions globally. In response, the European Union has begun exploring legislative options to tackle the problem. The committee’s vote is not yet binding but will be announced as soon as the new law is finalized.
The proposal, which was drafted by the ECON committee, sought to regulate cryptocurrency mining to reduce carbon emissions and conserve electricity. Unfortunately, it failed. However, it is unlikely to die, and it is still likely to be under scrutiny by policymakers concerned about global warming and energy security. It will be interesting to see whether any efforts to regulate cryptocurrency mining are successful. If they do, the outcome could lead to a ban on the industry.