IMF floats tax on Bitcoin mining in carbon emmissions crackdown
The International Monetary Fund (IMF) has floated the idea of a global tax on Bitcoin mining to reduce greenhouse gas emissions. The measure is intended to encourage the industry to reduce its carbon footprint, which currently accounts for only 0.19% of global carbon emissions.
The IMF estimates that a tax on bitcoin mining and data centres worldwide could generate $5.2 billion in annual revenue while reducing emissions by 100 million tons annually. This plan is seen as a way to mitigate the growing impact of cryptocurrency mining and data centers on global energy consumption.
According to the IMF, global electricity demand from bitcoin mining and data centres is expected to rise to 3.5% by 2027, which would equal the current consumption of Japan, the world’s fifth-largest consumer of electricity. By 2022, this sector already accounted for 2% of global electricity demand.
The Bitcoin Mining Council, an organisation representing several bitcoin mining companies, reported that the industry’s energy mix improved slightly to 59.9%, making it one of the most sustainable industries in the world. Despite this progress, the IMF believes a tax is needed to accelerate the transition to more sustainable practices.
By introducing a global tax on bitcoin mining and data centres, the IMF hopes to encourage the industry to use cleaner energy sources and reduce its carbon footprint. This move could have significant environmental benefits, especially as demand for electricity from these sectors continues to grow.
Subscribers 0
Fans 0
Followers 0
Followers