Governments all across the world are becoming increasingly concerned about the amount of crypto energy consumed, and the United States is no exception.
The Office of Science and Technology Policy (OSTP), which is run by Vice President Joe Biden, is seeking public input on crypto energy use and potential climate impacts.
President Biden signed an executive order earlier this month that many observers believe will have a significant impact on how the crypto business functions. This order directed federal agencies such as the OSTP to investigate how cryptocurrencies, in general, might impact the country’s financial system and, at the same time, its efforts to combat climate change.
In its release, the OSTP noted that digital assets that use “proof of work” (PoW) systems frequently consume a significant amount of energy, which could pose a problem in future efforts to mitigate climate change. The release did, however, mention how this technology could be applied to environmental research.
The deadline for submitting comments, according to the notice, is May 9, 2022.
Proof-of-work (PoW) projects use a lot of energy
While it is no longer news that crypto projects using the PoW mechanism have been subjected to heightened scrutiny due to their “high” energy consumption, policymakers all over the world have been obliged to take action in order to better “defend” the environment.
Recently, the European Parliament considered prohibiting proof-of-work blockchains like Bitcoin, but this appears to have been ruled out, based on the announcement of the MiCA report’s lead politician.
That does not, however, imply that all of the major stakeholders are on the same page. Erik Thedéen, the vice-chairman of the European Securities and Markets Authority (ESMA), called for a ban on proof-of-work networks and suggested that blockchains using the consensus switch to proof-of-stake.
How much power does cryptocurrency consume?
As many critics have pointed out, various crypto experts and papers have refuted the idea that crypto mining activities constitute significant damage to the environment.
Instead, they believe that crypto mining could result in a greener environment by incentivizing miners to seek out more sustainable energy sources.
ExxonMobil, a large oil and gas firm, has announced that it would now use extra natural gas to mine Bitcoin. Regardless, the public comments that the OSTP will receive will contribute to a better understanding of the environmental impact of mining.
What are your thoughts on the issue? Please write to us and let us know!
Also Read: Joe Biden Announces an Executive Order that Defines a National Crypto Policy in Six Aspects
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