The European Union’s parliament voted on Monday against a proposal to limit the use of proof-of-work cryptocurrencies.
The union’s Committee on Economic and Monetary Affairs voted 24-32, effectively thumbing down passing the initiative.
BREAKING: The ECON committee of the EU Parliament just voted against the de-facto POW-ban: 32 against, 24 in favor.
— Patrick Hansen (@paddi_hansen) March 14, 2022
Big relief & political success for the bitcoin & crypto community in the EU💪💪
Will share a breakdown of the vote and what’s next here in this thread. #Bitcoin
The proposal was part of the Markets in Crypto Assets (MiCA) framework aimed at regulating the region’s cryptocurrency industry.
Many crypto assets like bitcoin and ethereum use proof-of-work to confirm transactions and add new blocks to the chain. The process has received growing criticism for using up a lot of energy to process.
While there are calls to switch crypto mining’s power source to renewable energy, concerns have been raised that this could mean the infrastructure for green energy might end up favoring the crypto framework and not the public grid.
The carbon footprint of a single Bitcoin transaction now at an eye-watering 1259 kilograms of CO2. That’s about the same as the per passenger carbon footprint of a transatlantic flight from London to New York and back(!) https://t.co/TdPix7GLXY
— Digiconomist (@DigiEconomist) March 13, 2022
The proposed framework saw an additional provision over the weekend to limit the use of cryptos that use proof-of-work, which many in the cryptosphere have been equating to a ban since the limit renders most crypto mining activities inoperable.
6/ Any chances left for the POW-ban?
— Patrick Hansen (@paddi_hansen) March 14, 2022
The groups that lost the vote have one last option. They could veto a fast-track procedure of MiCA through the trilogues & bring the discussion to the plenary of the Parliament. They need 1/10 of the votes of the EP to do so, which they have.
Information for this briefing was found via EuroNews, Twitter. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.