White House Warns Of Crypto Mining’s Threat To U.S. Climate Efforts

White House Warns Of Crypto Mining's Threat To U.S. Climate Efforts

The environmental impact of Crypto mining may hamper the U.S. attempts to tackle climate change, according to the White House. The conclusion put the Biden administration at the front of a debate about the carbon footprint of digital assets that is currently raging. In addition, critics have raised concerns about the quantity of electricity utilised in cryptocurrency mining operations for months.

According to a report released on Thursday by the White House Office of Science and Technology Policy, the U.S. must take steps to reduce pollution linked to the manufacture of cryptocurrencies. The office recommended that the federal government gather more information on electricity consumption and collaborate with states and the crypto sector to establish standards.

According to the report, crypto operations in the U.S. now use about as much energy as home computers do. “Depending on the energy intensity of the technology used, crypto assets could hinder broader efforts to achieve net-zero carbon pollution consistent with U.S. climate commitments and goals,” the White House official said.

President Joe Biden requested the investigation in March as part of a comprehensive executive order on cryptocurrencies. In the coming weeks, several federal departments and organisations are scheduled to provide recommendations and studies for how the U.S. should deal with the asset class.

The Thursday findings are in line with the Biden administration’s emphasis on reducing climate change. American government organisations have started several global warming-related initiatives since 2021. Multiple computers compete to solve challenging math problems to create new coins and validate transactions on the Bitcoin and Ethereum blockchains. The winner adds newly verified transactions to the blockchain in exchange for token rewards.

More News