Main navigation

ECB's Fabio Panetta Claims Bitcoin Threatens Global Sustainability Efforts

News
Tue, 05/11/2021 - 14:37
article image
Alex Dovbnya
Bitcoin mining could undermine global sustainability efforts, according to ECB's Fabio Panetta
ECB's Fabio Panetta Claims Bitcoin Threatens Global Sustainability Efforts
Cover image via en.wikipedia.org
Read U.TODAY on
Google News

In his May 11 blog post, Fabio Panetta, a member of the executive board of the European Central Bank, writes that cryptocurrency mining is posing a threat to global suitability efforts because of its huge CO2 consumption:  

The enormous energy consumption and associated CO2 emissions of crypto-asset mining could undermine global sustainability efforts.     

The famed Italian economist adds that Bitcoin, the largest cryptocurrency, now requires more energy than the Netherlands.

Panetta believes that mitigating the environmental impact of crypto mining should be a global conversation:

Controlling and limiting the environmental impact of crypto assets, including through regulation and taxation, should be part of the global discussion.   

Related
Data Analytics Giant Palantir Considering Adding Bitcoin to Its Balance Sheet, Starts Accepting BTC as Form of Payment

A growing issue

With Bitcoin’s hashrate rebounding to new all-time highs, the amount of energy required for confirming transactions continues to grow, which attracts mounting criticism from environmental activists and politicians alike.

As reported by U.Today, Massachusetts Senator Elizabeth Warren described Bitcoin's carbon footprint as “a real issue.”

Earlier this month, New York State Senator Kevin Parker introduced a bill that would temporality suspend crypto mining in the state.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.