The global community has long been concerned about the energy costs required to mine popular cryptocurrencies and the impact of this process on the environment. European parliamentarians will have to consider a bill that explicitly prohibits the circulation in the region of cryptocurrencies mined using the energy-intensive “proof of work” mechanism.
According to Bloomberg , the bill will be voted on this Monday. According to the latest version of the document, all crypto assets in circulation and mined in the EU must comply with minimum environmental standards and provide for a phased adaptation plan for these requirements in case of non-compliance.
In fact, as the source explains, if adopted, this law will restrict the circulation of two popular cryptocurrencies in Europe – Bitcoin and Ethereum, since they are based on the “proof of work” model, which implies serious energy costs. And if in the case of Ethereum, migration to a more economical “proof of stake” model somehow looms on a constantly receding horizon, then there are no such plans for bitcoin. According to experts, the original text of the bill did not operate with cryptocurrency mining models. Representatives of local cryptocurrency exchanges have already protested against the introduction of such conditions for the circulation of cryptocurrency assets in the European Union, since they, in their current form, will lead to a ban on working with bitcoin.