Costa Samara, deputy director of energy at the White House Office of Science and Technology, explained in an interview that the white house has established policies to reduce cryptocurrency mining energy consumption.
Cryptocurrencies go hand in hand with climate and energy
President Joe Biden backed federal agencies in March to enable “responsible” mining of digital assets such as cryptocurrency Following the pressing executive order, the White House’s Energy team prepares a report on energy consumption. Costa Samara, deputy director of energy at the White House Office of Science and Technology, said in an interview:
If crypto mining is to be a meaningful part of the US financial system, it is to be developed responsibly, and Digital assets need to be thought through in some way if they are to minimize overall emissions. The White House energy team plans to evaluate everything from local noise pollution to the energy efficiency of using different mining techniques. He compares Bitcoin’s proof-of-work technique with the more than 99 percent proof-of-stake technique used by other cryptocurrencies, and it appears to be more energy efficient. The team will have an open mind when collecting evidence, we need to consider what the appropriate policy responses would be in a world that is transitioning to proof of stake, or in a world with a mix of business and proof-of-stake. As we reported as
Kriptokoin.com, earlier this year, President Biden issued an Executive Order titled “Ensuring the Responsible Development of Digital Assets”; This order questions whether existing legal frameworks are sufficient to accommodate robust Executive and independent agency, and potentially calls for greater consideration of new legislation.
First step towards regulating cryptocurrencies
The President’s order is the first time the White House has attempted to develop a coordinated plan for the regulation and development of cryptocurrencies, and therefore a coherent regulatory represents an important first step towards policy. The Executive Order outlines some objectives such as; Protecting US consumers, investors and businesses, maintaining the stability of the US and global financial systems, preventing illicit finance and national security risks, strengthening US leadership and technological competitiveness in the global financial system, etc.
According to a report by Bitcoin miner Compass Mining, several Bitcoin miners have started selling their cryptocurrencies. Moreover, the increase in mining difficulty and low Bitcoin prices have seriously affected the profitability of miners. In fact, Bitinfo’s data shows that Bitcoin mining profitability has slumped to its lowest level since mid-2020.
