- The state of Kentucky, USA has drawn up a draft bill which allows for preferential treatment to certain crypto operators
- The bill will mainly focus on operations that utilize clean energy to mine cryptocurrency
- This move is a welcome step for mining operations nationwide
As cryptocurrency steadily occupies the central stage in financial systems worldwide, a new draft bill proposed which aims to provide advantageous treatment to certain crypto miners will finally provide much needed relief to this sector.
The issue of carbon footprint
Despite its several obvious advantages, one of the major drawbacks of Bitcoin or any other cryptocurrency is its carbon footprint. Reports have suggested that mining Bitcoin alone annually produces about 36.95 megatons of carbon dioxide. It simultaneously consumes about 77.8 Terawatt hours (TWh). These statistics are comparable to the carbon footprint and electricity consumption of New Zealand and Chile respectively. The popularity of Bitcoins and altcoins are constantly on the rise. The need of the hour is to switch to greener initiatives. Therefore, the state of Kentucky has proposed a bill to incentivize it.
A welcome initiative
According to the bill, when and if crypto miners use green energy for the purpose of mining, their operations would be listed as businesses that operate with clean energy, thereby not causing environmental pollution. This enables them to avail tax incentives under the Energy Self Sufficiency law. Moreover, the state of Kentucky offers a stimulus for businesses and corresponding properties. This comes under the umbrella of the Energy Independence Act. Now crypto mining businesses can also be a part of it.
The bill, dubbed as the Commercial Cryptocurrency Mining Bill, is the brainchild of senator Brandon Smith. It also specifies that preferential treatment will be given to cryptocurrency services and operations. This will be for ones which have at least $1 million as capital investment. Though the exact type of crypto is not specified in the draft, it is speculated that all tokens would be encapsulated once it becomes a law. If everything goes according to plan, then there is a possibility of the law coming taking effect from as soon as the beginning of July, 2021. Not only does it succeed in improving the sentiments of the investors in currently unregulated industry, the new bill also paves the way for the entry of new and more dynamic crypto miners into the fold.
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