Biden Administration Expected to Publish Report on Bitcoin Mining and the Industry’s Impact on Climate

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Biden Administration Expected to Publish Report on Bitcoin Mining and the Industry’s Impact on Climate – President Joe Biden of the United States and his administration are reportedly concentrating on proof-of-work (PoW) mining. On July 2, 2022, the White House Office of Science and Technology Policy’s (OSTP) principal assistant director for energy examined the research report. If digital currencies are to thrive, the financial institutions must be “developed responsibly and minimizes total emissions,” according to OSTP official Costa Samaras.

The study will concentrate on proof-of-work (PoW) mining and its effects on the environment, according to the OSTP Principal Assistant Director, and will be released by the White House in August. On July 2, Constantine (Costa) Samaras revealed that the energy team of the Biden administration intended to examine mining operations utilizing demand response applications and the two most widely used crypto consensus models, proof-of-work (PoW) as well as proof-of-stake (PoS).

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If this is going to be part of our financial system in any significant sense, it’s vital that it’s developed responsibly and limits total emissions, Samaras told reporters at the news outlet Bloomberg Law. A conversation about the environment and energy needs to be had when we think about digital assets.

Because it requires so much energy to protect the PoW blockchain and confirm transactions, bitcoin mining has drawn a lot of negative comments. Two recent studies, however, have presented opposing viewpoints that emphasize how BTC mining might really be advantageous for the environment.

One particular study, for instance, demonstrates that the Bitcoin network uses 50 times less energy than the conventional banking system. Another environmental, social, and governance (ESG) paper cites research indicating that bitcoin mining may be able to significantly reduce methane leakage, emphasizing that no other technology might do it better.

Samaras is aware of the unfavorable reports that have been written over the past year despite the positive research, stories that claim there is noise, local pollution, older fossil generators being restarted in communities. “These are not small loads.”  Samaras clarified that the White House energy team plans to do research and develop proposals for policy responses that are suitable for PoW and PoS algorithms.

During the interview, Samaras said, “We need to consider what would be the proper policy responses under a world that transitioned to proof-of-stake, or a society that has some continuous mix of proof-of-work and proof-of-stake. 

Samaras’ comments come after U.S. President Joe Biden’s executive order (EO) on cryptocurrency, which was published during the first week of March 2022. A “national policy for digital assets spanning six important areas” is established by the crypto EO. The Ukraine-Russia crisis broke out just as the White House was about to launch the EO with a focus on crypto.

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Representative Michael McCaul (R-TX) of the United States urged Biden to develop a “strong plan” in April 2022 to prevent the use of cryptocurrency by foreign adversaries to evade financial sanctions. 

Currently, it appears that the next White House report on cryptocurrency mining is only research, but many people are curious as to whether government legislation might result from the new research and Biden’s aggressive climate change policy.

Originally posted 2022-07-08 21:43:25.

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