Legislators in British Columbia proposed a new measure to permanently ban new cryptocurrency mining operations from connecting to the provincial power grid, according to Decrypt.
“We must act with urgency to leverage our clean-electricity advantage and grow and diversify our economy,” said Minister of Energy and Climate Solutions Adrian Dix.
“Our new allocation framework will prioritize vital growth in sectors … while ensuring our clean energy is directed to projects that deliver the greatest benefit to British Columbians.”
The cryptocurrency industry consumes significant amounts of electricity as powerful computers verify transactions on a blockchain, a process known as mining.
Mining operations run nearly 24 hours a day, seven days a week, and, in many places, dirty energy such as coal, natural gas, or oil is used to generate the electricity required for the mining process.
These energy sources produce high carbon dioxide emissions, which exacerbate the planet’s overheating.
In areas where clean energy is used, cryptocurrency mining still diverts resources from homes and businesses, straining local power grids.
Though British Columbia is not a major hub for cryptocurrency mining, its cool climate and the availability of renewable energy have attracted several medium-sized operations that hope to advance their reputations as environmentally friendly.
Mining companies asserted that they often drew back on operations during peak hours and that they help stabilize grids by using excess power. They suggested a demand-response program or a flexible energy pricing model in lieu of an all-out ban.
Kadan Stadelmann, blockchain developer and current chief technology officer at Komodo Platform, believes that protecting the local power grids is important.
However, he suggested that the proposed ban could be politically motivated, and expressed hope for a compromise.
“Some concerns are absolutely valid. The industry hasn’t always communicated well about its energy mix or community impact,” said Stadelmann. “The answer isn’t denial, it’s transparency and innovation.”
💰Get TCD’s free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD’s exclusive Rewards Club.
