EU targets power usage of cryptocurrency miners to reduce Russia’s energy dependence – Mining Bitcoin News

Authorities in Brussels are taking steps to cut electricity consumption, including in cryptocurrency mining, as the EU faces limited energy supplies from Russia, seeking to reduce its dependence on Russia. The new Energy Efficiency Label is meant to address increased power usage in the crypto sector.

EU develops energy efficiency label for data centers as mining consumption rises

The European Union plans to introduce an energy efficiency label to combat increased electricity consumption in data centers such as cryptocurrency mining. According to Bloomberg, the EU will urge member states to limit the energy use of cryptocurrency miners. This is because Russia is trying to get through the winter with far less gas and other energy than it did before the sanctions for the war in Ukraine were imposed.

Citing a draft, the report said the EU’s enforcement departments would work with international partners to implement grading measures to encourage greener cryptosystems, such as proof-of-stake (PoS) protocols instead of energy. I made it clear that I would like to hire you. – Centralized Proof of Work (PoW) mechanism employed by Bitcoin.

“Just as the use of cryptocurrencies has increased significantly, so too has the energy consumption of cryptocurrencies,” notes the European Commission in its Action Plan. “When utilizing cryptocurrencies and other blockchain technologies in energy markets and transactions, care should be taken to use only the most energy efficient versions of the technology,” the commission stressed.

One of the key measures envisaged in the document released on Tuesday is to reduce the energy consumption of the Information and Communication Technology (ICT) sector, including through the “Data Center Environmental Labeling Scheme and Blockchain Energy Efficiency Label”. to control. In a press release, the commission explained:

Today’s plan decouples the ICT sector’s energy footprint from the exponential growth of data, as the growing demand for data centers and online services demands more resources from the energy system than ever before. A method is also outlined.

The move comes after previous attempts to ban PoW mining through the upcoming Markets in Crypto Assets (MiCA) regulatory framework. The attempt provoked a negative reaction from the Old Continent crypto community and industry as it amounted to a Bitcoin ban.

The controversial provision was eventually removed from the latest bill, but other texts require service asset providers to disclose the energy consumption and environmental impact of the assets they use. .

PoS mining, which the Ethereum blockchain recently migrated to, uses much less energy than proof-of-work mining of digital coins. The EU only accounts for about 10% of his PoW crypto mining, but new policies introduced by the 27-strong block in the sector could have global implications, Bloomberg noted. .

The cited document also reveals that the European Union will produce a report assessing the industry’s climate impact by 2025 and ask EU countries to end tax cuts for cryptocurrency miners. Brussels also argues that member states should be prepared to suspend mining activities in the event of power shortages.

What do you think of the EU’s attempts to reduce energy consumption in the crypto mining sector? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tasev, a tech-savvy journalist from Eastern Europe, loves what Hitchens says. In addition to cryptocurrencies, blockchain, and fintech, international politics and economics are sources of inspiration.