To lower carbon releases, the IMF intends to boost efficiency costs related to cryptocurrency mining by 85%.
Today's crypto mining consumes a lot of power and raises greenhouse gases.
Economists claim that the Bitcoin market is already taking steps to become more energy-efficient.
The International Monetary Fund has proposed an 85% increase in power tariffs for BTC mining. The objective of this effort is to tackle environmental issues associated with these enterprises' energy usage. The IMF believes that this tax could generate billions in funding while reducing greenhouse gases.
Tax Proposal and Expected Outcomes
The suggested fees rate is $0.047 per kilowatt hour for electricity used by electronic cash processors. This increase could bring in about $5.2 billion in annual revenue worldwide. The IMF also estimates that this tax could cut carbon emissions by 100 million tons per year, which is similar to Belgium’s yearly emissions.
The charge could rise to $0.089 per kilowatt hour if health impacts are taken into account. Cryptocurrency extraction, especially BTC, uses a large amount of power. For instance, a single Bitcoin exchange uses as much electricity as a Pakistani citizen consumes over three years. Together, cryptocurrency quarrying and AI data centres use 2% of the world's electricity and produce 1% of its carbon exhausts.
Industry Reactions to IMF's Proposal
However, industry experts have pushed back against the IMF’s proposal. Daniel Batten, a Bitcoin environmental analyst and advisory board member at Marathon Digital, criticised the IMF’s report. He said it unfairly links the carbon impact of AI data centres with cryptocurr mining. He also argued that the IMF’s report does not properly distinguish between AI data centres and cryptocurrency mining.
https://twitter.com/simplykashif/status/1824637045618131337
Batten also stated that there is no evidence that BTC mining increases carbon pollution, despite the fact that releases from AI data centres are increasing. He added that the IMF’s report overlooks the progress the crypto sector has made in becoming more sustainable.
Effective Strategies in Crypto exploitation
In response, many in the digital currency business are adopting more economically efficient policies. Some countries, like Venezuela and Iran, have banned coin mining due to power concerns. However, miners are now finding more efficient ways to operate.
The IMF’s proposal has sparked a debate within the cryptocurrency and AI data centre sectors. While the IMF aims to reduce environmental damage through higher taxes, industry leaders argue that the cryptocurrency industry is already moving toward a sustainable future.
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