- The need to stop increasing energy consumption in cryptocurrency mining.
- Regulatory procedures to be carried out.
- Cause of the recent situation
The European Commission has announced an action plan to expand the EU’s energy system globally. We also launched the REPowerEU Plan and the European Green Deal. The EU is proposing to stop cryptocurrency mining as it is an energy-intensive process.
Its sole purpose is to “improve the efficient use of energy resources, facilitate the integration of renewable energy into the grid and save costs for EU consumers and energy companies”.
The REPowerEU program was launched in May as a response to Russia’s invasion of Ukraine, which severely affected Europe’s energy supply. The European Commission said: “Controlling energy consumption in the ICT sector” is a very important part of the strategy.
Created to fulfill the motive of helping – “Fast Declining” [the EU’s] Fast forward a clean transition and reduce Russia’s dependence on fossil fuels by jointly achieving a more resilient energy system and a true energy union. “
To meet country power requirements, cipher The mining process needs to be paused “because of the need to load shed the power system”.
According to the EU’s official website, REPowerEU is the European Commission’s plan to make Europe dependent on Russia for fossil fuels by 2030 following Russia’s invasion of Ukraine. The EU can achieve independence from Russian oil and gas faster.
Recovering all import costs from Russia’s fossil fuels will require an investment of around £210 billion by 2027, putting a heavy strain of around £100 a year.
According to the “Commission Staff Working Document”, Europe accounts for 10% of the total. cipher Ireland and Germany top the list. A crypto-mining universal activity, the document refers to an upgrade of “technical tools for assessing the power consumption and carbon footprint of crypto-mining at the international level.”
Due to energy shortages due to international conflicts, the European Commission has “decided to implement targeted and proportional measures to reduce electricity consumption. cipher– To end tax cuts and other fiscal measures that benefit asset miners, and in the long run cipher-minor”.
The document describes the primary energy consumed by Bitcoin (BTC) under the Proof of Work protocol, stating that “mining is based on the consensus mechanism it consumes, not on the prerequisites of the blockchain. It can be based on technology,” he said. Much less energy than Proof-of-Work as it does not involve a mining process. “