The EU plans to Track Bitcoin Mining taking place in Europe to minimize Electricity Consumption
The European Commision notices the rising electricity consumption due to cryptocurrency mining by the European Union, as stated by European Commissioner Mariya Gabriel, who supervises digital economy and society.
Gabriel noted that the Commission is aware of the concerns raised due to increasing electricity usage for cryptocurrencies and blockchain technology in general. This issue seems to be a disapproving issue for bitcoin as much of the mining takes place in China and also in other areas as per estimates.
The EU has made rules that apply to energy efficiency given that electrical consumption is an economic activity. However, there is no limit to prevent or limit energy consumed within the EU. The statement notes, the cryptocurrency business model is designed to deliver a high valuation of cryptocurrencies. As the consumption of electricity increases, cost and demand for cryptocurrency are likely to undergo modification.
Anyhow, the Commision has not started to track the cryptocurrency mining because it is not an illegal activity. However, there are plans to review the event because of the impact on demand for energy. Christine Lagarde, Managing Director of International Monetary Fund, told hat bitcoin mining is too energy intensive. Several analysts and environmentalists have sounded the alarm on the industry’s power usage, and Lagarde said that it has transformed into a “big concern” given that the world is already battle climate change
The European Commission plans to observe regulatory practices to strengthen technical expertise. The goal is to assist the EC in determining what role – if any – government authorities can play to support the creation of such technologies and to develop policy recommendations.