Blockchain company Ripple (XRP)announced that it has invested $100 million to combat climate change.
With the investment, the company wants to contribute to the modernization of the carbon credit market.
Thanks to carbon markets, companies and individuals can purchase carbon credits in cases where they cannot zero their carbon emissions.
In addition, the company announced that it will invest in a new function that will enable the tokenization of carbon credits.
Why Did Ripple Make This Investment?
According to the company’s CEO, Brad Garlinghouse, with this investment, Ripple has completed its own role in defending against climate change.
Garlinghouse believes that the blockchain and crypto industry has a leading role in meeting the full potential of the carbon market.
The company’s latest investment move actually seems to be in line with its future carbon commitments.
In addition to the necessity of a future in which carbon emissions are reduced, Garlinghouse believes that the carbon market is equally important for achieving climate goals.
The CEO said that by 2023, the company aims to keep its carbon emissions at zero net.
Founded in 2021 by Ripple, Crypto Climate Accord currently has more than 500 members. Garlinghouse, Blockchain and cryptocurrency He said that the sector should be transparent, verifiable and scalable and that if these conditions are met, the market will grow and the desired results can be obtained.
According to the company’s statement, partnerships have already been formed with some climate-conscious fintech companies.
What Role Do Cryptocurrencies Have in Carbon Emissions?
The world’s largest cryptocurrency bitcoin, When problems with cryptocurrencies are discussed, coin is usually meant.
According to the latest data, the mining of Bitcoin, a cryptocurrency that works with the Proof of Work mechanism, is thought to require an energy consumption equivalent to the electricity use of the Netherlands.
*Not investment advice.