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HomeCrypto NewsMarketEU Avoids A Trillion Dollar Bitcoin PoW Banning Mistake

EU Avoids A Trillion Dollar Bitcoin PoW Banning Mistake

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EU decided not to ban Bitcoin mining.



The Committee on Economic and Monetary Affairs (ECON), a committee of the European Parliament, has voted against a Bitcoin mining ban. Members of the European Parliament (MEPs) voted 32-24 against passing the initiative in favor of bitcoin.

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Earlier, The EU Parliament voted on Monday to determine if a legislative draft on the regulation of cryptocurrencies could become a law in the EU. The draft, known as the market in crypto assets, seeks to regulate the use of cryptocurrencies, especially with respect to energy consumption and its environmental concerns.

Bloomberg reported that the controversial draft, which has been in the works since 2020, was never voted upon due to a clause that could easily be misinterpreted as a blanket ban on cryptocurrencies. However, a late inclusion of another clause, which demands minimal energy use for cryptocurrencies, has alarmed industry analysts, who believe it could be a move to stifle the industry and the coin market.

MiCA Against Proof-of-work

Market in crypto assets (MiCA), which the EU Parliament voted on this Monday, sought to compel proof-of-work protocols such as Bitcoin and Ethereum to adopt less energy-demanding consensus protocols such as proof-of-stake. However, industry leaders believe that this could be an intentional move to curb the utilization of some of the biggest crypto assets within the EU.

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Even though the parliament’s new draft was reportedly less contentious towards PoW digital assets, there are still significant anti-proof work rhetorics that gave industry leaders some concern. A part of the draft seen by this journalist states that coins regulated within the EU:

“shall be subject to minimum environmental sustainability standards concerning their consensus mechanism used for validating transactions, before being issued, offered or admitted to trading in the Union.”

A Trillion Dollar Mistake

Michael Saylor, the co-founder and CEO of Microstrategy said that it would be a big mistake for the EU Parliament to move against cryptocurrencies. A Twitter post from Saylor states:

“The only settled method to create a digital property is via Proof-of-Work. Non-energy-based crypto approaches like Proof-of-Stake must be deemed securities until proven otherwise. Banning digital property would be a trillion-dollar mistake.”

 

 

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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