A new report claims that the U.S. President Joe Biden’s administration is focused on proof of work (PoW), mining. On July 2, 2022, the principal assistant director of energy at the White House Office of Science and Technology Policy discussed the report. The OSTP official, Costa Samaras, said if digital currencies plan to stick around then it is important that these financial systems are “developed responsibly and minimizes total emissions.”
White House Eyes Bitcoin Mining and the Industry’s Emissions
According to the OSTP principal asistent director, a new report from the White House will be released in August. The study will concentrate on proof-of work (PoW), mining and its impact on the environment. Constantine (Costa) Samaras detailed on July 2 that the Biden administration’s energy team plans to look at mining farms working with applied demand response programs, and the two most popular crypto consensus models, proof-of-work (PoW) and proof-of-stake (PoS).
“It’s important if this is going to be part of our financial system in any meaningful way, that it’s developed responsibly and minimizes total emissions,” Samaras told reporters at the news outlet Bloomberg Law. “When we think about digital assets, it has to be a climate and energy conversation.”
Bitcoin mining has been subject to a lot criticism due to the high energy consumed in order for transactions and security of the PoW blockchain. Two recent studies show that BTC mining can actually prove to be beneficial for the environment. One study found that Bitcoin mining uses 50 percent less energy than traditional banking systems. An environmental, social and governance report (ESG), also highlights that Bitcoin mining may be able to eliminate significant amounts of leaky methane. The report emphasizes the fact that no other technology can do so better.
OSTP Official Says the White House Needs to Look at the ‘Appropriate Policy Responses Under a World That Shifted to Proof-of-Stake’ and the Security Benefits of Proof-of-Work
Despite positive studies, Samaras has seen the negative reports that have been published over the past year that say there’s “noise, local pollution, older fossil generators being restarted in communities — These are not trivial loads.” Samaras explained that the White House energy team plans research policy response concepts that are appropriate for PoW and PoS algorithms. “We need to think about what would be the appropriate policy responses under a world that shifted to proof-of-stake, or a world that has some continuous mix of proof-of-work and proof-of-stake,” Samaras remarked during the interview. The White House’s principal assistant director for energy added:
While proof-of-work can be energy-intensive in design, it increases security.
The statements from Samaras follow U.S. president Joe Biden’s crypto executive order (EO) issued during the first week of March 2022. The crypto EO establishes a “national policy for digital assets across six key priorities.” The White House was supposed to establish the crypto-focused EO in February, but the Ukraine-Russia war started. In April 2022, U.S. representative Michael McCaul (R-TX) urged Biden to create a “robust strategy” so crypto cannot be used by international enemies to avoid financial sanctions. Currently, the upcoming White House report concerning crypto mining seems to be simply research, but many wonder if government policies could come out of the new study and Biden’s aggressive climate change strategy.
What do you think about the Biden administration’s plans to publish a report on crypto mining and its impact on the environment? Please comment below to let us know your thoughts on this topic.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.
