The New York State Department of Financial Services (NYDFS) has announced a crackdown on crypto mining with fossil fuels, stating that the practice is not in the best interest of consumers or the environment. Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. However, because cryptocurrencies are digital and anonymous, they have been used for criminal activities including money laundering and terrorist financing. NYDFS Superintendent Ben Lawsky said that crypto mining with fossil fuels is a “major threat” to consumer safety and the environment because it uses large amounts of energy and produces large amounts of greenhouse gas emissions. He said that NYDFS will work with other state regulators to take action against companies that engage in crypto mining with fossil fuels. Lawsky said that NYDFS is not targeting individual users of cryptocurrencies but rather companies that engage in crypto mining with fossil fuels. He said that NYDFS will work with other state regulators to take action against companies that engage in crypto mining with fossil fuels. ..
New York Governor Kathy Hochul signed a bill into law on Tuesday that aims to limit the use of environmentally-damaging fossil fuels for cryptocurrency mining. It sets a two-year moratorium on new and renewed air permits for fossil fuel power plants used for energy-intensive cryptocurrency mining. The law also instructs New York’s Department of Environment Conservation to evaluate how cryptocurrency mining affects the state’s climate goals.
Governor Hochul said in a statement, “I will ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of our environment.”
Environmental impact is a common criticism of cryptocurrency, as many blockchains are built on proof-of-work, which uses significant amounts of energy to verify each transaction compared to regular banks and digital payments. Newer blockchains use a more efficient proof-of-stake model, but not Bitcoin and some other chains. The Ethereum blockchain migrated to proof-of-stake earlier this year.
The extensive use of fossil fuels is one of the most significant problems with cryptocurrency. Many other industries rely heavily on fossil fuels, but at least you usually get something useful in the end, like a car or computer. Pumping toxic fumes into the air for Bitcoin mining just gets you money that isn’t very good at being money.
Source: Associated Press
