Lawmaker Introduces Bill to Prohibit Crypto Mining in NY, Pending Environmental Assessments
Bitcoin’s rallies have brought the crypto industry to the fore of financial services, but it has also presented environmental issues. Bitcoin mining has shot up due to increased demand for the world’s oldest cryptocurrency.
But the discourse is gradually turning on the energy consumption of the premier digital asset.
Bill To Prohibit Crypto Mining Introduced
Following energy concerns elicited by Bitcoin mining, a new bill was introduced at the New York State Senate to address the energy consumption of Bitcoin mining centers.
The bill called New York Senate Bill 6486 and introduced by Senator Kevin Parker aims to stop crypto mining plants from working until their environmental impact can be determined.
The bill has been sent to the State Senate’s Environmental Conservation Committee for further review.
According to the bill’s provisions, all crypto mining firms would observe a three-year hiatus wherein the state would conduct a comprehensive survey of the environmental impact of the firm’s greenhouse gas emissions from mining cryptocurrencies.
It will also look into the likely impact on water quality, air quality, and the wildlife in the environment.
The inspection would then be concluded with a 120-day public comment period and a public hearing. Mining plants found to be toxic to the environment would not be permitted to operate.
The bill introduced on Monday by Senator Parker noted that this step was necessary given the rising impact of climate change on the health, welfare, and economy of New York. It also said that severe climate conditions have led to flooding, rising sea levels, heat waves, coastal erosion, unpredictable weather conditions, loss of wildlife, increased risk of disease outbreak, and several other causes.
The document also pointed out that crypto transactions, most especially Bitcoin’s, consumed too much energy. It estimates the power needed to process transactions in a month as the same amount used by a country.
BTC Contributing To Global Warming
Previously, the general criticism against crypto and Bitcoin was the volatility surrounding them. Before this issue was solved, Bitcoin’s detractors shifted to the energy needed to process transactions.
Bitcoin uses a proof-of-work (PoW) consensus algorithm, which can be energy-consuming. Some groups have argued that Bitcoin transactions require more energy than countries like Argentina and Sweden consume yearly. But others say that this could be good for the world.
Popular fintech Square revealed in its report that Bitcoin could lead the world to cut down on its carbon footprint. The tech giant believes BTC could force the world to look into renewable energy sources to generate power.
According to the report, Bitcoin miners are poised to capitalize on and leverage renewable sources. Per the report,
“Bitcoin miners are unique energy buyers in that they offer highly flexible and easily interruptible load, provide a payout in a globally liquid cryptocurrency, and are completely location agnostic, requiring only an internet connection.”