Biden Administration Expected to Publish Report on Bitcoin Mining and the Industry's Impact on Climate
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 White House Office of Science and Technology Policy (OSTP), principal assistant director for energy, discussed the report. Costa Samaras, an official at OSTP, stated that digital currencies will be around for the foreseeable future. He said that it was important that financial systems be “developed responsibly and minimizes total emission.
According to the OSTP principal deputy director, a new report will be published in August by the White House. The study will examine proof-of-work (PoW), mining and its impact on the environment. Constantine (Costa), Samaras described that the Biden administration’s Energy Team plans to examine mining farms using applied demand response programs and the two most widely used crypto consensus models, proof of work (PoW), and proof-of–stake (PoS)
Samaras stated that “if this is going be part of our financial systems in any meaningful manner, it’s important that it’s developed responsibly to minimize total emissions.” Digital assets must be considered as part of the climate and energy conversation.
The energy used to verify transactions and secure PoW blockchains has been the subject of a lot criticism. Two recent studies show that BTC miners could be beneficial to the environment. One study has shown that Bitcoin mining uses 50 times less energy per transaction than traditional banking systems. A second report on environmental, governance, and governance details findings that bitcoin mining could potentially eliminate significant amounts of methane leakage and emphasizes that no technology can do this better.
OSTP Official: The White House Must Look at the ‘Appropriate Policies Under a World that Shifted To Proof-of Stake’ and the Security Benefits of proof-of-Work
Samaras, despite positive studies, has seen negative reports published over the last year that state “noise and local pollution, older fossil-generators being restarted within communities — These are not trivial load.” Samaras said that the White House Energy team plans to research PoW and PoS algorithm appropriate policy responses. Samaras said that it was necessary to consider the best policy responses in a world where proof-of work and proof-of stake are possible. The White House’s principal assistant for energy also added:
While proof-of-work can be energy-intensive in design, it increases security.
These statements by Samaras are in line with the crypto executive orders (EOs) issued by Joe Biden, U.S. President. The crypto EO creates a “national policy to protect digital assets across six priority areas.” However, the White House had intended to issue the crypto-focused EO in February. But the Ukraine-Russia conflict began. U.S. Representative Michael McCaul (R – Texas) asked Biden for a “robust strategic plan” to ensure crypto is not used by foreign enemies in order to avoid financial sanctions. The White House’s forthcoming report on crypto mining appears to be merely research. However, many are curious if the new study and Biden’s aggressive climate change strategy could lead to government policies.