Within the scope of the European Union (EU) energy plan, all other cryptocurrencies, especially Bitcoin, will be evaluated in terms of energy consumption.
The European Union is working to reduce power consumption with one of its latest decisions. As part of these studies, it will put all cryptocurrencies, especially Bitcoin, on a scale according to their energy consumption.
EU Will Measure Bitcoin’s Energy Consumption
The European Union will develop an energy efficiency label for cryptocurrencies such as Bitcoin in an effort to rein in the industry’s rising electricity consumption.
The European Commission will work with international stakeholders to come up with a rating measure that would encourage more environmentally friendly crypto systems such as Proof of Stake, according to a draft proposal to be announced.
The EU’s executive arm made the following statement on the subject in its draft action plan:
“As their use has increased significantly, so is the energy consumption of cryptocurrencies. While leveraging the use of cryptocurrencies and other blockchain technologies in energy markets and trading, care should be taken to use only the most energy-efficient versions of the technology.”
According to the document released in addition to all this, the block will also urge member states to end tax cuts for crypto miners, while preparing a report assessing the climate impact of the industry by 2025. The EU will recommend that countries should also be prepared to shut down their mining activities in the event of a power outage.
