The Bank of Russia has announced that it will support accelerating the adoption of cryptocurrency payments for international settlements. According to Elvira Nabiullina, governor of the Bank of Russia, these crypto-based payments must be launched in a sandbox-style experimental regime. In contrast, payments with national digital assets will be launched without similar precautions. Bank of […]
Bitcoin News
Green Bitcoin: Sustainable Energy Usage Surges To Record 55% High
Bitcoin, the enigmatic cryptocurrency known for its volatile price swings and digital gold status, is making a surprising play for a new title: sustainability champion.
A recent analysis by Bitcoin environmental impact expert Daniel Batten reveals a remarkable surge in renewable energy use for mining, reaching a staggering 55%. This marks a significant shift from just four years ago, when the figure languished below 40%, and paints a picture of an industry undergoing a green metamorphosis.
From Carbon Culprit To Clean Crusader?
Bitcoin’s mining process, essential for creating new coins, has historically been a lightning rod for environmental criticism. The sheer computing power required gulps up massive amounts of electricity, often sourced from fossil fuels. This led to accusations of Bitcoin being a climate villain, spewing greenhouse gases and contributing to global warming.
However, the narrative is evolving. Companies like Luxor Technology are harnessing Ethiopia’s hydroelectric bounty, while Argentina’s Unblock Global repurposes wasted natural gas from oil reserves.
Even domestic players like CleanSpark are upping their game with low-carbon solutions. These efforts, coupled with an overall decline in mining emissions intensity, suggest a genuine commitment to going green.
The Green Rush: Challenges And Cautions
Despite the positive strides, the sustainability of Bitcoin is far from over. The ever-growing network demands more energy, and ensuring enough renewable sources to keep pace is critical.
Furthermore, the environmental impact extends beyond energy consumption. The mountains of discarded mining hardware raise concerns about e-waste, another hurdle on the path to true sustainability.
The Future: Doubling Down On Green
The success of Bitcoin’s green gamble hinges on several factors. Continued investment in renewable energy infrastructure is paramount, and regulatory frameworks that incentivize sustainable practices could play a vital role.
Ultimately, the industry needs to demonstrate a long-term commitment to environmental responsibility, moving beyond individual success stories to ensure widespread adoption of green solutions.
While the jury is still out on whether Bitcoin can truly shed its carbon-intensive past, the recent surge in renewable energy use is a promising sign. This green gamble, if played with transparency, scalability, and a holistic approach to sustainability, could pave the way for a future where Bitcoin and the environment coexist in harmony.
The question remains: will Bitcoin’s green hand win the game, or will it fold under the weight of its own growth and environmental concerns? Only time, and the industry’s commitment, will tell.
Featured image from Karolina Grabowska/Pexels, chart from TradingView
Report: Bitcoin Mining Sustainable Energy Usage Reaches 54.5%
Daniel Batten, co-founder of CH4 Capital, reported that bitcoin mining has reached all-time high levels of sustainable energy usage and emissions mitigation. According to Batten, 54.5% of the energy used for this activity is sustainable, and the industry is mitigating 7.3% of all its emissions directly, which constitutes a new record for any industry without offsets.
CH4 Capital Co-Founder Daniel Batten: Bitcoin Mining Is Getting Greener
Bitcoin mining is getting greener, according to a recent article issued by Daniel Batten, co-founder of CH4 Capital, a methane mitigation solutions provider. He estimates that, according to his calculations, the Bitcoin mining grid is now using 54.5% sustainable energy, being the only global industry that is majorly powered by this kind of energy.
In his Bitcoin ESG Forecast #003, Batten disputes the idea that Bitcoin mining is a fossil fuel-powered industry. He acknowledges that until Q3 2022, it was. However, after the Chinese mining ban was enacted, miners moved their operations to greener on-grid sites or sustainable off-grid locations.
Criticizing Cambridge’s model on bitcoin emissions as outdated, Batten stated:
There are no longer any independent models or studies using contemporary data that support the thesis Bitcoin is mainly powered by fossil fuels.
In addition, Batten’s research revealed that more Bitcoin miners were using methane emissions than previously accounting for, with undisclosed companies using vented gas to power their mining operations. The process, that uses methane to provide electricity for these operations, still leaves a carbon dioxide byproduct; nonetheless, Batten explained that methane is 84x more warming than CO2 over 20 years, and using it is better than letting it vent straight into the atmosphere.
22 mining companies are mitigating methane emissions, providing a direct offset of 7.3% of network emissions without relying on carbon instruments. While Bitcoin still produces more emissions than what the network mitigates, Batten stressed that it “can become the fastest industry to go greenhouse negative without offsets.”
What do you think about Daniel Batten’s revelations about Bitcoin’s environmental impact? Tell us in the comments section below.
Brazil to Discuss Digital Currency Usage for Financial Transactions in G20
Brazil will address the subject of digital currencies and how they can improve the financial system for the Group of Twenty (G20). Roberto Campos Neto, president of the Central Bank of Brazil, stated he wants the G20 to consider the benefits of using these currencies for making financial transactions and to work towards adapting rules to take advantage of this.
Brazil to Discuss Digital Currencies as G20 President
The government of Brazil will discuss digital currencies and the possible benefits of implementing them for financial transactions as part of the Group of the Twenty (G20). Having assumed the G20 presidency on December 1, Brazil will leverage its position to advance the digital agenda and assess how the twenty largest economies could adapt their regulatory frameworks to take advantage of digital currencies.
At a recent event, Roberto Campos Neto, president of the Central Bank of Brazil, explained Brazil will touch on this subject in the group. According to Valor Economico, he stated:
Digital currencies can greatly reduce the costs of international transactions. The G20 will work to improve the settlement and governance of international transfers.
Campos Neto referred to the improvements that programmability, a trait of digital currencies, brings to the financial transactions arena, clarifying that it can offer efficiency gains due to the possible scheduling of asset purchases and payments.
Monetization of user data will be a significant factor in lowering the costs associated with using these currencies, Campos Neto stressed. “It is a technology that is here to stay. It democratizes,” he concluded.
Brazil is currently in the pilot stages of its upcoming digital currency, dubbed drex, which features an elevated degree of programmability, including automating transactions involving assets such as cars and real estate. The launch of this currency could happen in 2024, according to previous statements from Campos Neto.
What do you think about Brazil taking the issue of digital currencies to the G20? Tell us in the comments section below.
Nexo Mastercard Adds Credit and Debit Toggle to Optimize Crypto Usage
Nexo has introduced a new “Dual Mode” feature on its cryptocurrency Mastercard, allowing users to switch between debit and credit functions to optimize cryptocurrency spending.
Nexo Unveils Dual Mode Card Capabilities to Streamline Crypto Payments
Nexo‘s new feature enables real-time toggling between modes within the Nexo app, providing flexibility based on users’ budgets and purchase needs, according to the company’s announcement on Thursday. Nexo said the newly launched service enhances the capabilities of its cryptocurrency card.
“The Nexo Card embodies the pinnacle of customer-centric innovation, cultivated from user-driven needs that Nexo has been diligently addressing over the years,” Nexo co-founder and managing partner Antoni Trenchev told Bitcoin.com News. “By bringing the pioneering Nexo Card with the Dual Mode capability to market, Nexo has further strengthened its position as a leading innovator in the crypto space,” Trenchev added.
First introduced in 2022, the Nexo card was developed with Mastercard and Dipocket. With Dual Mode, the Mastercard offers different functions based on the user’s needs, according to Nexo. The company’s announcement further details that users can earn interest on their balance and make free ATM withdrawals up to €10,000 per month.
Crypto debit cards first emerged around 2016, with early providers like Wirex and Bitpay issuing Visa and Mastercard-brand products. Their popularity has grown as cryptocurrencies have become more mainstream. Over the years, these cards have provided a convenient way to utilize crypto for daily purchases without having to cash out.
What do you think about Nexo’s Dual Mode feature? Share your thoughts and opinions about this subject in the comments section below.
Yuan Usage Soars in Argentina: Over 500 Companies Request to Pay for Imports in Chinese Currency, Report
Over 500 companies in Argentina have reportedly requested to pay for imports using Chinese yuan as the U.S. dollar shortage worsens. “The central bank doesn’t have dollars so it needs the emergency aid China is offering,” a trade economist in Buenos Aires explained.
Chinese Yuan Usage Hits Record High in Argentina
The Argentine customs agency has revealed that over 500 companies in Argentina, spanning various industries such as electronics, auto parts, textiles, oil, and mining, have requested to use Chinese yuan for import payments, Bloomberg reported Friday.
As the scarcity of U.S. dollars persists in Argentina, the use of the Chinese yuan has reached an all-time high in the country. According to officials from the country’s central bank, import payments authorized in the Chinese currency have amounted to .9 billion. Marcelo Elizondo, a trade economist in Buenos Aires, explained:
The central bank doesn’t have dollars so it needs the emergency aid China is offering … For Argentina, its currency ties to China represents an emergency, but for China it’s a point of leverage to take advantage of a geopolitical opportunity.
Whirlpool Corp. is among the companies seeking to utilize China’s currency for import payments. The American appliance giant invested million in its new factory outside Buenos Aires last year. Juan Carlos Puente, president of Whirlpool Latin America, was quoted as saying: “We’ve had to stop the factory at some points and that’s not good for business, productivity nor quality … We’re working to see how we can leverage this new avenue of flows to be able to continue importing materials.”
According to Argentina’s customs agency, between May and August, Argentine companies, including Mirgor and Newsan, made import payments totaling 0 million in Chinese yuan.
China recently granted Argentina access to over half of an billion currency swap line, aimed at bolstering trade between the two countries. This bilateral swap agreement, which has been in place since 2009, serves as a contingency measure to enhance foreign reserves during periods of liquidity crises.
Maria Castiglioni, director of consulting firm C&T Asesores in Buenos Aires, emphasized that Argentina is left with limited options due to the scarcity of the USD, stating:
The only option it has left is to access the yuan from the China swap line.
Recent data from Mercado Abierto Electrónico, one of Argentina’s prominent exchanges, shows that the daily proportion of Chinese yuan transactions in the country’s foreign currency market has reached a new daily record of 28%. This represents a significant increase compared to the previous month when the share of yuan transactions stood at a maximum of 5%.
What do you think about companies in Argentina wanting to pay for imports using Chinese yuan? Let us know in the comments section below.
Terra’s Do Kwon Receives 4-Month Jail Sentence in Montenegro for Counterfeit Passport Usage
Montenegro’s court has determined that Do Kwon, the co-founder of Terraform Labs, is guilty of using a counterfeit Costa Rican passport. As a result, he has been sentenced to four months in jail for the offense.
Do Kwon Sentenced to 122 Days in Prison, Defendant Has 8 Days to Appeal
According to the Montenegrin court, Do Kwon, also known as Kwon Do-Hyung, has been convicted of possessing and attempting to use a counterfeit passport. The court’s announcement specifies that Kwon has been found guilty of the criminal offense of document forgery. Montenegrin law enforcement authorities will seize Kwon’s travel documents, which include a Costa Rican passport, a Belgian passport, and two other forms of identification.
The court has imposed a four-month jail sentence on Kwon, as stated in a translated court statement that mentions “all relevant circumstances were taken into consideration in determining the severity of the sentence.” Kwon has an eight-day window to lodge an appeal following the receipt of a written copy of the court’s judgment.
Kwon’s sentencing comes after the former executive of Terraform Labs was granted bail, with a set amount of 5,000. Nevertheless, the Montenegrin High Court unequivocally revoked the lower court’s bail ruling on May 24, 2023. Marija Rakovic, a court spokeswoman, directly relayed this official information to Bloomberg.
So far, Kwon has been incarcerated in Montenegro for a cumulative period of 88 days. Unless he files an appeal against the verdict, it is anticipated that he will serve an additional 122 days in jail. Reports indicate that Montenegro’s prisons are overcrowded and deemed distressing. Meanwhile, both South Korea and the United States are actively pursuing the establishment of an extradition treaty with Montenegro, aiming to bring Kwon to face charges in their respective countries.
What are your thoughts on the four-month jail sentence handed to the co-founder of Terraform Labs for using a counterfeit passport? Share your views and opinions about this subject in the comments section below.
Iraq Issues Ban on US Dollar Transactions to Bolster Usage of Iraqi Dinar
The government of Iraq issued a ban on using the U.S. dollar for conducting business transactions on May 14. The ban, which is already in effect, is designed to bolster the usage of the Iraqi dinar, the fiat currency of the country, and to reduce the influence of the dollar and its exploitation in black markets.
Iraq Issues Ban on U.S. Dollar-Based Transactions
The Iraqi Ministry of Interior has issued a ban on using the U.S. dollar for conducting personal and business transactions in the country. According to local reports, the ban, which was enacted on Sunday, is designed to bolster the usage of the local currency, the Iraqi dinar, and reduce the advance of dollarization in Iraq.
The measure also seeks to lower the difference between the official exchange rate offered by the government, and the exchange rate offered on the black market, which has fueled price rises.
The ministry stated:
The dinar is the national currency in Iraq. Your commitment to transact in it instead of foreign currencies boosts the country’s sovereignty and economy.
Furthermore, it remarked that dealing in currencies other than the Iraqi dinar was punishable by law and that it was committed to “hold accountable anyone who attempts to undermine the Iraqi dinar and the economy.”
Enforcement and Fines
For the enforcement of this ban, the Interior Ministry’s Anti-organised Crime Directorate has moved to request traders to sign pledges assuring they will only conduct business using the Iraqi dinar. General Hussein Al Tamimi, who directs the operations at the directorate, explained that trade violators will be fined one million Iraqi dinars (around 0).
Repeat offenders will receive harsher punishments, that also include imprisonment. Al Tamimi stated:
If the violator repeats it he will face an imprisonment penalty of up to one year plus a one-million Iraqi dinar financial fine. In case of a third violation, that penalty will be doubled and we will have the business license turned.
The measure has caused a lot of stress in the dollar exchange black markets, which have limited activities to servicing only known customers, as the ministry has deployed undercover officers to support the implementation of the U.S. dollar ban. Some arrests have already been made in big trading markets per local press reports.
However, this is affecting the activities of Iraqi citizens, who need dollars to make purchases of real estate and cars, as owners demand the payment of these items to be made in foreign currency. In official markets, U.S. dollars are scarce and citizens need to fulfill a series of requirements to receive them, due to the sanctions the U.S. government has enacted against the country.
What do you think about Iraq’s ban on the usage of the U.S. dollar? Tell us in the comments section below.
Zambia to Complete Testing Real-Life Crypto Usage Simulations by June — Government Minister
Zambia is set to complete real-life crypto usage simulations by the end of June, Felix Mutati, the country’s science and technology minister has said. The Zambian minister said his country is seeking a balance between innovation and consumer protection.
Zambia Needs to Build Digital Infrastructure Before It Introduces Crypto
According to the Zambian minister of science and technology, Felix Mutati, his country is set to complete tests which simulate real-life cryptocurrency usage by the end of June. However, Mutati also argued that Zambia must focus on building a digital infrastructure including digital identities before introducing cryptocurrencies.
The latest remarks by Mutati came nearly two months after he first revealed that Zambia was testing technology to regulate cryptocurrencies. As reported by Bitcoin.com News in February, Mutati also lauded cryptocurrency, which he describes as a technology that encapsulates a future that Zambia desires.
Nevertheless, despite being the embodiment of a future that Zambia craves, crypto still poses risks to users. According to Mutati, the Zambian government’s task now is to put in place regulations that have the right balance.
“Our main goal in the area of cryptocurrency is to strike a balance between innovation in terms of digital payments … [and] citizens’ safety, particularly given that cryptocurrency is very volatile. The central bank is simulating that to see what would happen in the real world. The results will assist us [in] the formulation of the regulation,” Mutati reportedly said.
Meanwhile, when asked about the rate of investment inflows into Zambia, Mutati, a former finance minister, claimed that more investors are showing an increased appetite to invest in the Southern African nation. The minister is also said to have addressed lingering concerns about the size of Chinese loans which topped .7 billion in 2022.
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What are your thoughts on this story? Let us know what you think in the comments section below.
Ethereum’s Booming Usage Could Spark ETH Drop: Here’s Why
Ethereum has undergone a consolidation period for over the past month. Since the beginning of June, the second-largest cryptocurrency by market cap has mostly traded between the 7 support and the 0 resistance level. Such a narrow trading range has made it nearly impossible to determine what the future holds for Ether.
Nonetheless, the TD sequential index recently signaled that ETH was bound for a bearish impulse based on its 1-week chart. Data reveals that each time this technical index has provided a sell signal in the form of a green nine candlestick for over the past year, Ether takes a massive nosedive.
TD Index Presents Sell Signal On ETH's 1-Week Chart. (Source: TradingView)
Thus far, Ethereum has gone down roughly 12% since the TD setup turned bearish, but different on-chain metrics suggest more losses to come.
High Levels of Network Activity
Ever since the perpetrators of the PlusToken Ponzi transferred 790,000 ETH to an address associated with mixer deposits, the network activity of this altcoin exploded. The number of addresses holding 1,000,000 to 10,000,000 ETH surged by 20% on June 24. Meanwhile, roughly 6,000 new addresses with 100 to 1,000 ETH joined the network on that day alone.
Larry Cermak, Director of Research at The Block, believes that such an impressive increase in the number of addresses holding Ether is not related to increasing adoption, but in fact, it has to do with PlusToken.
“This is literally just a massive bump from PlusToken splitting up one address into thousands of addresses. Some will be also from the DeFi growth, but compared to [PlusToken] very little. If you want to use this chart to prove that the adoption is increasing it needs to be heavily caveated,” said Cermak.
The Number of Ethereum Addresses Explodes. (Source: Santiment)
A similar spike was registered in the number of daily addresses on the Ethereum network, according to Santimet. The behavior analytics platform said that ETH daily active addresses rose to levels not seen since 2018.
“The number of daily addresses interacting with ETH has spiked in the past 24 hours to a 2-YEAR SINGLE DAY HIGH of 486,000 addresses! The last time Ethereum’s address activity was this high was on May 5th, 2018,” said Santiment.
Daily Active Ethereum Addresses Skyrocket To Levels Not Seen in Two Years. (Source: Santiment)
Based on historical data, spikes in daily active addresses have lined up with market tops. And given the significant number of tokens the individuals behind the PlusToken scam are off-loading, the probabilities of a steep correction increase exponentially.
Key Support Level to Watch Out
For this reason, investors must watch out for the 7 support level. Moving past this barrier could trigger a sell-off that sees Ethereum fall to 0 since there is not any significant barrier in-between based on IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model.
Weak Support Ahead of Ethereum. (Source: IntoTheBlock)
Holders within the 0 price range would likely try to remain profitable in their long positions preventing ETH from further losses.
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Charts from TradingView.com