In newly released research articles, the European Central Bank (ECB) has hinted at a possible crypto mining ban, citing the issues of cryptocurrency in relation to climate change.
- The three new research articles focus on stablecoins and their effects on the economy, the unregulated nature of cryptocurrencies, and the effects that crypto mining has on climate change.
- The article that has taken particular attention is the article about the effects that mining crypto has on the climate. The mining of cryptocurrencies requires a significant amount of energy to do so, this energy being produced by fossil fuels. Significant energy is also used up by blockchain which requires a lot of computational power to run.
- According to the ECB some crypto-assets have the same carbon footprint as mid-sized countries such as Spain or the Netherlands. This is a cause for concern and has led to the ECB hinting at a crypto mining ban to mitigate as much as possible the crypto effect on the climate.
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