New York City Comptroller Brad Lander supports a two-year moratorium on proof-of-work cryptocurrency mining in the state, pointing to the massive energy needs the city faces.
The moratorium is being considered this week by state lawmakers as they wrap up the legislative session on Thursday.
Lander, in a letter to top Democratic Legislative Leaders and Governor Kathy Hochul, echoed concerns from environmental organizations about the process, which uses a large amount of energy to generate virtual tokens.
Advertising
“An increase in energy demand, at a time when fossil fuel-fired power plants need to start running less, will undoubtedly put pressure on New York’s generation resources,” Lander wrote. “When this happens, peak units will be forced to connect around New York to meet the city’s demand needs.”
Concerns about the proof-of-operation cryptomining process have been particularly acute in New York’s Finger Lakes region, where old fossil fuel power plants have been used to help generate the large number of servers needed.
At the same time, environmental organizations pointed to the state’s efforts to combat the effects of climate change and argued that the operations ran counter to those goals of reducing fossil fuel use.
“New York State is reaching a pivotal time in its attempt to electrify the energy sector, and the current proof of work of cryptocurrency mining in New York State deviates from our goals by increasing our dependence on fossil fuels, thereby creating additional financial stressors and jeopardizing investments for New York,” Lander wrote in the letter.
At a press conference in May, Hochul acknowledged the concerns raised by environmental groups and government organizations, but added that there should be a “balance” with efforts to attract jobs to northern parts. of New York State who have experienced economic difficulties.
–
