A small toy figure and representations of the virtual currency Bitcoin stand on a motherboard in this picture illustration taken May 20, 2021. REUTERS/Dado Ruvic/Illustration
KUALA LUMPUR — China’s sweeping ban on cryptocurrency mining delivered a blow to an industry criticized for its environmental impact, but emissions from the sector could grow as a result unless other countries follow China’s lead, climate and tech experts said.
Bitcoin’s value tumbled last week after China’s central bank urged banks and payment firms in the country to crack down harder on cryptocurrency trading, in the latest tightening of restrictions on the sector by Beijing.
This was good news for climate activists, who have voiced concerns over the potential for the energy-hungry cryptocurrency mining industry to disrupt international efforts to rein in global warming.
Bitcoin and other cryptocurrencies are created or “mined” by high-powered computers competing to solve complex mathematical puzzles, which guzzle energy and fuel planet-warming emissions unless they consume electricity from renewable sources.
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Beijing’s recent move has paralyzed the Chinese industry – accounting for more than half of global cryptocurrency production – making it far more difficult for individuals in China to trade the digital coins.
But by cutting off access to China’s power grid, with its plentiful supply of affordable renewable energy, the new restrictions could push miners towards dirtier sources of electricity, warned Pete Howson, a senior lecturer in international development at Northumbria University in Britain.
