Bitcoin Mining Bans May Increase Global Carbon Emissions

According to Cointelegraph, governments in eco-friendly nations considering a ban on Bitcoin mining might inadvertently harm the global economy. Researchers from Exponential Science suggest that well-intentioned policies could lead to unintended consequences, such as redirecting mining activities to regions with higher carbon intensities. This shift could result in a net increase in global carbon emissions, a phenomenon referred to as aggravated carbon leakage. The researchers emphasized that Bitcoin mining bans in low-emission countries could lead to increased carbon emissions globally. They pointed out that not all Bitcoin mining is equal, as countries use different energy sources with varying environmental impacts. For instance, a mining ban in Canada, which extensively uses nuclear and hydro-electric energy, would have a significant negative impact. Such a ban could increase network emissions by approximately 5.6%, or 2.5 million tonnes of CO2 annually. On April 24, Cointelegraph reported that the Canadian province of Manitoba had extended a moratorium on new requests to the government-owned Manitoba Hydro agency for electrical service for cryptocurrency operations. This extension applies to new requests from crypto miners and requests for electric service that have not yet resulted in an agreement to construct infrastructure. Meanwhile, on November 1, Russian President Vladimir Putin signed a set of laws providing a regulatory framework for crypto mining operations in Russia. Although the legislation defines key legal concepts in crypto mining, industry experts caution that Russia has not fully legalized crypto mining. Instead, they view the measures as a framework establishing new controls and restrictions for the sector.