NEW YORK — New York will be the first U.S. state to temporarily ban certain cryptocurrency mining that uses electricity from fossil fuels, a move prompted by the high energy consumption of this process and the resulting environmental impact.
The governor, Democrat Kathy Hochul, signed the measure on Tuesday that was approved last June by the state legislature, thus entering into force immediately.
The standard focuses on a specific part of the cryptocurrency mining process, that of “proof-of-work” authentication, which validates transactions on the blockchain and is used in the production of various currencies, including bitcoin. .
This is an electricity-intensive process that has generated concern about the environmental impact of this growing industry in New York.
The new measure suspends new licenses for two years and paralyzes renewals for mining companies that use fossil fuels, so that only those that use renewable energy can be active.
During that time, the state plans to conduct environmental impact studies of this activity and its ramifications.
In New York and elsewhere in the US, some closed fossil fuel plants are being repurposed for bitcoin mining, which has been criticized by activists who say it slows the state’s progress towards its climate goals, while its supporters argue which contributes to job creation.
