It is that time again; once again a government will vote on a possible ban on proof-of-work cryptocurrencies like bitcoin (BTC)† This time it is about the American state of New York. The New York Assembly, similar to the House of Representatives in the Netherlands, but from New York State, will soon vote on such a bill. If this bill is passed, the bill will be sent to the Senate for approval.
Proof-of-work bitcoin mining
Central in the bill state the influence of proof-of-work cryptos on the climate. It is of course no secret that mining such cryptocurrencies takes a large amount of energy. Today, this is a thorny issue for many governments and regulators who are trying to take measures against the skyrocketing climate change.
“The continued and expanded operation of data centers that use proof-of-work authentication methods to validate blockchain transactions will greatly increase the amount of energy use in New York State, and it is reasonable to believe that the associated greenhouse gas emissions are irreversible. will harm compliance with the Climate Leadership and Community Protection Act, in violation of state law.”
Residents of the US state are trying to oppose the possible law. For example, there is a petition launched a campaign to reject the law. If the law is actually passed, New York will voluntarily waive a lot of great opportunities to greatly expand the economy, the petition says.
“If this law is passed, New York will forfeit the unique opportunities Bitcoin mining offers for economic expansion and the diffusion of renewable energy. This could set a precedent for states across the country to make the same mistake.”
MiCa crypto legislation in Europe
Of course, New York is not the first place where a possible ban on proof-of-work mining was discussed. A very important ballot recently took place on a similar ban within the European Union. Luckily one voted majority against this bill and is a ban within the EU off the map for the time being.
However, the danger has not passed. It is clear that governments around the world are not enamored with proof-of-work mining. It will therefore most likely not be long before a new bill will emerge.
–
