Limiting Proof-of-Work Crypto Back on the Table as EU Parliament Prepares Virtual Currencies Vote
Industry News
A clause requiring proof-of-work cryptocurrencies such as Bitcoin to transition to the more environmentally friendly proof-of-stake consensus process is included in a draft of MiCA that will be voted on by parliament on Monday.
The proof-of-work consensus process that underpins popular cryptocurrencies such as Bitcoin and Ether is an energy-intensive one. The computing method has come under fire from EU legislators because of energy issues.
According to one version of the proposed draft, crypto-assets “must be subject to environmental sustainability norms for its consensus method for confirming transactions prior to being issued, sold, or allowed to trade in the Union.”
Additionally, it states that energy-intensive crypto assets already in use in the EU will be required to “establish and maintain a phased rollout strategy to guarantee compliance with such standards.”
The cryptocurrency community has reacted swiftly, with some urging EU residents to contact their legislators in opposition to the idea.
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