The EU Commission provides 800,000 euros to demonstrate the alleged climate damage caused by Bitcoin. What measures could now be implemented against BTC?
One might think that the big questions about cryptocurrency regulation have been clarified in the European Union. Finally, the Markets in Cryptoasset Regulation (MiCA) was passed and the temporary ban on Bitcoin was successfully avoided. However, a new tender from the European Commission indicates that action is now being taken again against Bitcoin.
The implications are significant, as they could lead to Bitcoin and Bitcoin mining being discriminated and overregulated in the EU in the future.
EU Commission: Why So Curious?
At the end of September, the European Commission published the following call for proposals: “Development of a sustainability methodology and standards to mitigate the environmental impact of cryptoassets.” They are willing to spend 800,000 euros in taxes on the new methodology used to assess the environmental damage of cryptocurrencies.
For starters, a scientific study of cryptoeconomics is praiseworthy, although a closer reading reveals that it is not primarily about acquiring knowledge, but primarily about political interests. The reason can be found in the detailed explanation of the tender. The EU Commission is already certain that cryptocurrencies cause ecological and social damage.
Tax Money for Bitcoin
Specifically, the call states that “There is evidence that cryptoassets can cause significant damage to the climate and the environment and generate negative economic and social externalities, depending on the consensus mechanism used to validate transactions.”
This introduction indicates that the research does not focus on various cryptocurrencies, but ultimately only focuses on Bitcoin. The anti-Bitcoin camp in the EU is once again trying to collect alleged evidence and then implement separate measures against Proof-of-work, i.e., Bitcoin. Ultimately, the crypto economy would contribute to jeopardizing the sustainability goals set out in the Paris Climate Agreement, according to the brief description.
Therefore, a neutral tender cannot be expected. Only research institutes that take a critical stance towards Bitcoin can receive a contract. Therefore, this is not an open investigation, but rather a commissioned work that aims to “assess the negative impact of Bitcoin.” Recent statements and studies that show exactly the opposite – that Bitcoin has the potential to have a positive impact on the climate – seem to be deliberately ignored.
The Last False Argument
The “climate killer argument” appears to be the latest bullet casing for Bitcoin opponents in Brussels. As reported in the MiCA negotiations, there is a partly strongly ideological movement against Bitcoin, especially in the Green and Left camps.
It is not known exactly what a subsequent regulation of Bitcoin will look like in the future. However, it can be safely assumed that the damage would be enormous.
Anti-Bitcoin Measures Endanger MiCA
As an officially climate-damaging cryptocurrency, Bitcoin could be discriminated against compared to Ether and Co. For example, the EU could ban Bitcoin mining, impose an environmental tax on BTC transactions, or require companies like stock exchanges to only offer Bitcoin from green production for commerce or use for services.
Regardless of what is finally implemented, one thing is certain: the progress made in recent months on the MiCA regulation and the subsequent strengthening of Europe as a place would be destroyed in the event of anti-Bitcoin measures. After all, regulatory certainty is of no use if the most important cryptocurrency cannot be used economically.
By Audy Castaneda
