Europe to introduce energy efficiency labels for blockchains

English Oct 21, 2022

The European Union is ready to introduce energy efficiency labels for blockchains.  The European Commission introduced these measures as part of broader plans to control energy consumption, including an environmental labeling scheme for data centers, energy labels for computers and measures to make it clearer how much energy telecom services use.

The EU will provide financial support for research into digital technologies in the energy sector through various public sector-led programs.  However, it was not specifically mentioned whether any of these supports would make their way directly to the cryptocurrency industry.

From the beginning, the European Union adopted a very permissive attitude towards cryptocurrency mining.  Last March, the European Parliament's Committee on Economic and Monetary Affairs rejected a clause to ban mining of proof-of-work cryptocurrencies (such as that used in the Bitcoin network) in the region, removing the relevant paragraph in the Markets in Crypto bill. Assets (MiCA) before being voted on.

The Markets in Crypto Asset Regulation (MiCA), expected to take effect in late 2023, will force some market participants to disclose their environmental and climate footprint.  Benefiting those currencies that use Proof-of-Stake such as Ethereum, Solana and Cardano.

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Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.