Europe wants to ban harmful cryptocurrencies, including bitcoin

Yesterday, December 7, the London Business School hosted the Insight Summit. Among all the reports, the most resonant was that of the ECB (European Central Bank) representative Fabio Panetta. The official called for a ban on a number of cryptocurrency assets.

In his report, Panetta pays special attention to the environmental impact of certain cryptocurrencies on the environment. According to him, this is a serious problem that requires international cooperation to find an effective solution.

Cooperation between global jurisdictions, such as the EU and the US, as well as harmonization of cryptocurrency mining taxation can improve the situation, Panetta believes. The official emphasized that in order to minimize the negative effect in the long run, a complete ban on certain virtual coins is required, and the policy includes bitcoin.

The issue of strict control over cryptocurrency mining has long been relevant in the eurozone. Due to the energy crisis in Europe, it may be banned completely. Back in October, «given the energy crisis and the increased risks predicted for the winter,» the European Commission called on EU members to influence cryptocurrency miners in their countries and reduce electricity consumption for cryptocurrency minting. In addition, the European Commission insists on the abolition of tax exemptions and other bonuses for companies specializing in Proof-of-Work.

As a reminder, by 2025, the EU has pledged to prepare a report that will describe the impact of cryptocurrencies on the environment and the possibilities of mitigating the effects of climate-damaging technologies.