September 28, 2022

Wire Service Canada

Complete Canadian News World

Here is a cryptocurrency management plan for sustainable growth

Cryptocurrencies and the Environment, published by:

Estimated reading time: 6 minutes

Read more articles

Cryptocurrencies Ecosystem Sustainability

Bitcoin mines in Canada use 80 to 90% renewable energy sources, but the government continues to be concerned about the potential environmental impacts they could create.

Bank of Canada Governor Tiff Macklem and his predecessor, Stephen Poloz, have made their stance on cryptocurrencies public: not in favor. Indeed, Canada argues that a transition to a financial system based on digital currencies is not sustainable.

It is true that digital currencies like Bitcoin use a lot of electricity but where does it come from? If a mine Bitcoin worked 100% with renewable energy sources Will the environmental problem be solved then?

The large amount of electricity required by the mines is a highly debatable point, but we shall see that other factors influence and place it in practice. Canada on the defensive.

Cryptocurrencies are legal in Canada

Canada is a country particularly attentive to environmental policies, and for this reason it is employed A defensive stance for digital currencies. As it is an expanding phenomenon and has yet to be tested on a large scale, we can only speculate as to what the global impacts will be.

Thinking of cryptocurrencies as a money exchange implies greater clarity and transparency (which we don’t even have in the traditional financial system). Currently Exchange with digital currencies is legal But in Canada they don’t A legal tender.

This means you can buy and sell cryptocurrencies but that’s it The Canadian dollar is the only legal tender of the country. Specifically only:

  • Banknotes issued by the Bank of Canada under the Bank of Canada Act
  • Coins issued under the Royal Canadian Mint Act
READ  Canada bets on lithium and cobalt, but does not hold China's infiltration - Corriere.it

Cryptocurrencies and Environmental Impacts

Bitcoin mines in Canada produce “clean” electricity That is, it comes from renewable energy sources such as hydropower, solar power and wind power. He said Close the kale, CEO of Neptune Digital Assets In Vancouver:

“Green Energy is Getting Cheaper, But Bitcoin Mining Needs a Push for More Renewable Energy Sources.”

For example, Bitforms is one of the largest cryptocurrency mining companies in Canada with five Quebec-based supermarkets. Like most cryptocurrency mines It uses 80 to 90% percentage of renewable energy Mainly hydropower.

But the power consumption is unfortunate It is not the only factor affecting the environment And in communities, e-waste generated by cryptocurrencies should also be considered.

Canadian mining conditions

In Canada, There are no national or provincial laws regulating cryptocurrency mining But applicable tax and public securities laws. The prospect of miners starting their mines in Canada is good even though they have yet to wade into a sea of ​​laws.

Demand for new mines is increasing as Canada offers bitcoin miners large outlets to work with energy from renewable sources. This department is set up to be well managed Specific policies related to consumption.

Energy from renewable sources is not constant, think about solar energy which has zero efficiency at night. Very much Hydroelectric power than Quebec It reaches its maximum during winter.

The new policy will make Bitcoin miners mandatory The energy consumption of cryptocurrency mining is reduced by 95% for up to 300 hours during the winter months. This allows you to mitigate peak demands and reduce impact.

READ  Turnover increased by 24 percent in the first quarter

Also Read: Bitcoin and Environmental Pollution: What Are the Expected Developments?

PRINCIPLES OF CANADIAN PRINCIPLES

Generally, the principles of C. are necessary to start your business in CanadaFair competition, efficiency and sustainability. This makes future prospects more worrisome than other countries where domestic policies are weak.

In For example the Democratic Republic of Congo or Brazil If laws to protect the environment are weak, the consequences will be severe. For example, considering that cryptocurrency mines run on renewable energy sources, how is waste disposal handled?

Countries like Canada may be good pilot projects to test the feasibility of a transaction towards digital currencies, as they have a more conventional infrastructure. Generally sustainability is defined as the union of environmental, social and economic and embraces all social classes.

The impact of cryptocurrencies has been the protagonist of many documentaries, and as renewable energy becomes cheaper, it is hoped that the development of cryptocurrencies will follow a path towards sustainability, but there is still a long way to actually reduce the impacts of anthropogenic activities.