Critics speak of a possible “de facto ban” of the energy-intensive proof-of-work process.
(Photo: Bloomberg)
Frankfurt The Economic and Monetary Affairs Committee of the European Parliament will vote on a new regulatory framework for crypto assets on Monday. If crypto assets are issued or traded in the EU, they must be “subject to minimum environmental sustainability standards and establish and maintain a phased implementation plan to ensure compliance with these requirements,” the final draft of the law states, as reported by Bloomberg news agency. The results of the vote are expected around 5 p.m.
This meant that short-term amendments were made to the text that would ultimately lead to a ban on Bitcoin services, as critics of the draft complain. Cryptocurrencies such as Bitcoin and Ether would be affected.
New Bitcoins, but also other cryptocurrencies are created in the so-called “digging” or “mining” process. This process requires enormous computing power and thus energy. The reason for this is the “Proof of Work” concept, with which the miners update the blockchain, i.e. the accounting of the system.
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
further
Read on now
Get access to this and every other article in the
Web and in our app free of charge for 4 weeks.
further