Artistone

New Vice-chairman of ESMA Proposes Bitcoin Mining Ban, Endorses Proof-of-stake (PoS)

UTC by Kofi Ansah · 3 min read
New Vice-chairman of ESMA Proposes Bitcoin Mining Ban, Endorses Proof-of-stake (PoS)
Photo: Depositphotos

The new vice-chairmain of ESMA has been very vocal about his views on Bitcoin mining, describing it as a hindrance to meeting Paris Agreement climate targets.

The newly appointed vice-chairmain of the Board of Supervisors of the European Securities and Markets Authority (ESMA), Erik Thedéen has recommended that regulators across the European Union, impose a blanket ban on proof-of-work (PoW) Bitcoin mining.

The new vice-chair of ESMA speaking in a recent interview with the Financial Times, made those comments, adding that, proof-of-stake (PoS) an alternative consensus algorithm that is regarded by many experts as more energy-efficient, seems to have an upper hand over proof-of-work (POW). 

Thedéen, who is also the chair of sustainable finance for the International Organization of Securities Commissions, and the Director-General of Sweden’s Financial Services Authority (FSA), and a top EU regulator, had previously asserted that Bitcoin mining had become a “national issue” in Sweden. 

Thedéen’s remarks came in a joint statement from the FSA and the nation’s Environmental Protection Agency last year, when the duo revealed that only a total ban on PoW mining could help the country meet its Paris Agreement goals despite the nation’s state-owned power provider denying any allegations.

The new vice-chair of ESMA has been very vocal about his views on Bitcoin mining, describing it as a hindrance to meeting Paris Agreement climate targets. “The solution is to ban proof-of-work. Proof-of-stake has a significantly lower energy profile. We need to have a discussion about shifting the industry to more efficient technology,” Thedéen stated.

Thedéen however rebuffed any claims of him advocating for the prohibition of cryptocurrencies altogether. He claimed that he was not in favor of a “wholesale ban” on crypto, as “the financial industry and a lot of large institutions are now active in cryptocurrency markets,” he stated. He also stated that bitcoin mining should not be allowed to consume large portions of the nation’s renewable power supply.

Bitcoin mining over the years has been at the center of undying criticisms for its negative impact on the environment even in the face of new and improvised ways to try and curb the damage. A recent survey published by the Bitcoin Mining Council (BMC), revealed that the share of renewable energy used for Bitcoin mining increased to 58.5% in the fourth quarter.

These numbers still don’t seem to impress Thedéen as he claims that Bitcoin is now hogging up renewable energy in Sweden, his home country, describing it as “a national issue”.

Bitcoin is now being tackled as a national issue for Sweden because of the amount of renewable energy devoted to mining. Swedish regulators, last year,  claimed that “the social benefit of crypto-assets” was “questionable.”

Bitcoin News, Blockchain News, Cryptocurrency news, News
Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

Related Articles