The White House Office of Science and Technology Policy on Thursday warned that cryptocurrency mining operations could hinder the country’s ability to mitigate climate change. The White House said in a report that crypto operations in the U.S. now consume as much energy as all home computers or all residential lighting. The report is a result of President Joe Biden’s executive order in March that called on the government to examine the risks and benefits of cryptocurrencies.
The White House Office of Science and Technology Policy on Thursday warned that cryptocurrency mining operations could hinder the country’s ability to mitigate climate change. It also said federal agencies should consider information from crypto miners and local utilities “in a privacy-preserving manner” to help understand and mitigate the problem. According to a White House report, crypto operations in the United States now consume as much energy as all home computers or all residential lighting. The findings come amid growing concern about the amount of electricity used by cryptocurrency mining operations.
In order to create new coins and validate transactions, cryptocurrency mining requires banks of computers to solve complex math equations. The most popular cryptocurrency, Bitcoin, is committed to this “proof of work” system, though the second-most popular currency, ether, is shifting to a different method that may require less energy. According to the report, US crypto production accounts for between 0.2% and 0.3% of global greenhouse gas emissions and 0.4% to 0.8% of domestic emissions, though the estimates are uncertain. Mining cryptocurrency emits greenhouse gases primarily by burning coal, natural gas, and other fossil fuels to generate electricity.
According to the report, crypto mining produced between 110 and 170 million metric tons of carbon pollution globally this year, with roughly 25 to 50 million metric tons produced in the United States alone. Electricity is generated by purchasing it from the power grid or by manufacturing and disposing of computers and mining infrastructure. The White House stated in the report that “depending on markets, policies, and local electricity sources, electricity usage from digital assets contributes to GHG emissions, additional pollution, noise, and other local impacts. Depending on the energy intensity of the technology used, crypto-assets could stymie broader efforts to achieve net-zero carbon pollution in accordance with U.S. climate commitments and goals,” the report added.
The report is the result of President Joe Biden’s March executive order, which directed the government to investigate the risks and benefits of cryptocurrencies. The president has pledged to cut US emissions by half from 2005 levels by 2030 and to achieve net-zero emissions by 2050. According to the report, global crypto mining emissions are greater than those of many individual countries and equal to those of all barges, tankers, and other ships on inland waterways combined. Furthermore, Bitcoin, the world’s most valuable digital currency, accounts for roughly two-thirds of global cryptographic greenhouse gas emissions.
