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Polygon [MATIC] Bets $20M To Go Fully Green

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Ethereum scaling solution Polygon has unveiled the Green Manifesto which is deemed as a “smart contract with Planet Earth”. In a series of tweets, the layer-2 protocol has pledged $20 million as part of its efforts to mitigate the ecosystem’s environmental footprint entirely.

Speaking on the launch, Polygon Founder Sandeep Nailwal has called for more sincere efforts from blockchain firms to form a “united front” to fund and “leverage technology that helps heal the earth rather than destroy it.

The blog mentioned Polygon has taken the first step by purchasing $400,000 worth of high-quality and traceable BCT and MCO2 carbon credits, the equivalent of nearly 90,000 tons of CO2 emissions. It will then selectively retire the offsets within the carbon token pools that meet the highest standards for additionality and positive environmental impact.

The layer-2 solution is partnering with KlimaDAO, a decentralized collective of environmentalists, developers, and entrepreneurs which will also analyze the Polygon network’s energy footprint and support its emission management and mitigation strategy.

In addition to that, Polygon has also commissioned the Crypto Carbon Ratings Institute (CCRI) to audit its carbon footprint.

Polygon’s carbon negative comes ahead of Ethereum’s upcoming merge

Notably, the network’s pledge to sustainability comes ahead of Ethereum’s transition to a Proof-of-Stake consensus mechanism, which will reduce the network’s energy consumption by almost 99 percent.

The team behind the project is also investing in cutting-edge zero-knowledge [ZK] technology that it claims will play a crucial role in onboarding the next billion users to Web3.

“Through our sustainability commitment and community-driven efforts, we can successfully address societal shifts, avoid the worst impacts of climate change, and meet the sustainable development goals set out by the United Nations,” Nailwal said.

As cryptocurrency makes quick inroads, environmental crusaders have been on the edge who allege that digital “mining” creates a massive carbon footprint due to the staggering amount of energy it requires.

According to a survey by Digiconomist, the carbon footprint of a single Ethereum transaction as of December 2021 was found to be 102.38 kilograms of CO2, which is “Equivalent to the carbon footprint of 226,910 VISA transactions or 17,063 hours of watching YouTube.

Nevertheless, the latest initiative by Polygon will pave the way for crypto creators around the world to switch to eco-friendly alternatives.

White House Examines Crypto’s Impact On Climate

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The White House is currently seeking public opinion on crypto’s impact on the climate. Following Joe Biden’s executive order last month, the president entrusted the Office of Science and Technology Policy [OSTP] with drafting a report that examines whether digital assets “impede or advance efforts to tackle climate change” and makes moves toward a “clean and reliable electricity grid.”

While releasing the report recently, the team explored the climatic concerns, calling for the public to weigh in on the same. The report will also analyze any potential benefits of crypto and blockchain technology. According to a document published in the Federal Register, the office noted,

“It also seeks comment on implications that digital assets have for U.S. policy including as it relates to electricity grid reliability and greenhouse gas intensity. The office will also explore if digital assets could improve the reliability of verifying carbon offsets and accounting for greenhouse gas emissions.”

At the beginning of the year, a House committee held a discussion on crypto’s carbon footprint. Experts unanimously agreed that solutions that ensure crypto doesn’t fry the planet should be top of regulators’ minds as digital assets become more widely used.

President Joe Biden speaking at a podium, flanked by U.S. flags.

In an executive order signed earlier this month, President Joe Biden had directed the government to study how to reduce crypto’s negative impacts on the climate. This came after several environmental groups put pressure on the government’s perceived inaction.

Revising crypto tax rules will generate $11B in revenue in 10 years

In the latest development, the US government’s budget for the 2023 fiscal year said that modernizing tax rules around digital assets will yield roughly $11 billion in revenue over the next decade.

The budget from the Biden administration which was released by the White House on 28 March noted that modifying the tax rules on digital assets will reduce the deficit by $10.9 billion from 2023 to 2032. 

It is also estimated that revising tax rules to include digital assets will bring the government $4.9 billion in revenue in 2023. Apart from that, the budget sanctioned $52 million to combat “the misuse of cryptocurrency” by expanding the Department of Justice’s ability to address cyber threats to the United States.

EU’s crypto bill roars with huge majority;Bitcoin ban-motion goes in vain

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The ECON Committee of the European Parliament has approved the EU’s Markets in Crypto Assets law (MiCA), on 14 March 2022.

According to reports, the overall committee vote was 31 in favor, four opposing, and 23 abstentions, with the Green and Left parties opposing the legislation the most and the EP Party and RE supporting it the most.

Their motion to reintroduce clauses that would force proof-of-work mining out of the Union, however, failed to clear the committee. It was this very dispute that had delayed the committee votes from the end of last month. In light of recent developments, Dr. Stefan Berger, MiCA’s rapporteur, and the ECON Committee’s leader tweeted,

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Berger, in an official statement said,

“By adopting the MiCA report, the European Parliament has paved the way for an innovation-friendly crypto-regulation that can set standards worldwide. The regulation being created is pioneering in terms of innovation, consumer protection, legal certainty and the establishment of reliable supervisory structures in the field of crypto-assets. Many countries around the world will now take a close look at MiCA.”

A final attempt to ban Bitcoin at EU parliament stamped out

The Union has dismissed efforts to ban Bitcoin (BTC) mining and trade in yet another significant move for the crypto industry.

A measure that intended to prohibit the usage of cryptocurrencies that relied on the energy-intensive consensus technique known as proof-of-work was removed by the committee earlier this week. The ruling may have effectively outlawed the prominent cryptocurrency bitcoin (BTC) throughout the European Union.

Instead, the committee voted in favor of an auxiliary solution provision that would require the Commission, which is in charge of proposing new legislation, to submit a legislative proposal by 1 January 2025 to include any crypto-asset mining activities that contribute significantly to climate change in the EU taxonomy (a classification system) for sustainable activities.

The majority of the members voted against banning energy-intensive BTC-related operations, preferring instead to make the processes greener and less harmful to the environment.

This provision was enacted in order to reduce cryptocurrency’s significant carbon footprint. Because of energy problems, proof-of-work has been heavily criticised by regulators and politicians all over the world. Some EU officials are apprehensive that renewable energy will be used to support cryptocurrencies like bitcoin rather than being used for national purposes.

The MiCA proposal will now be sent to EU governing bodies for further discussion. At the time of writing, Bitcoin (BTC) was priced at $38,677.12 with a daily drop of 1.07%.

Bitcoin may not last long: Cornell professor

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Bitcoin, the most beloved coin of the world, has been experiencing very inconsistent prices in the market. Through it all, it remains the most valued asset in the industry, it ranks as the No.1 cryptocurrency. At the time of writing, Bitcoin was priced at $46,541.09 and experienced a drop of 2.55% in the last 24 hours.

An economics professor at Cornell University and author of ‘The Future of Money: How the Digital Revolution is Transforming Currencies and Finance’ says that Bitcoin’s use of blockchain technology is not very efficient and that the asset itself may not last long.

The real legacy of Bitcoin is not the cryptocurrency itself, but blockchain technology

Eswar Prasad, senior professor of international trade policy at Cornell University, told CNBC in a recent interview that Bitcoin hasn’t used blockchain technology in a very efficient way. He also states that there are many other steady coins, that have used blockchain far more decisively.

According to Prasad, the world’s largest cryptocurrency hasn’t been serving well as a medium of exchange and it is not going to have any elemental value except for what investors feel,

“Cryptos have become purely speculative assets”

Furthermore, he adds that this cryptocurrency has a validation mechanism that ostensibly destroys the environment and it doesn’t calibrate very well. It is true that the said coin’s carbon footprint is extremely massive and that it is bigger than the whole of New Zealand. Cambridge University researchers say that this cryptocurrency consumes more energy than the entire annual energy consumption of the Netherlands.

Over the years, the crypto market has seen the rise of gobs of other altcoins that have been stable in terms of price and consume a subjacent amount of energy in comparison to BTC.

Professor Prasad stated that the promise of Decentralized Finance(DeFi) using blockchain technology is real. He believes that blockchain technology, the primitive automation of cryptocurrencies, will be radically revamped magnificently in the ways of transactions in our daily lives. Blockchain technology is the future, it has already brought about changes in our central financial ways leaving everyone to wonder what it holds in the future.

Latin America’s bitcoin profile on the rise thanks to Mexico and El Salvador

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Bitcoin has been making its way further into the mainstream this year as the price of the flagship cryptocurrency has soared. While the price is off its peak of more than USD 63,000, the bitcoin bulls are still optimistic about the trajectory of the market for the near future. A couple of key catalysts for the bullish outlook are stemming from the Latin American region. In Mexico, one cryptocurrency startup just achieved unicorn status, while El Salvador is looking to make bitcoin legal tender.

In Mexico, a bitcoin trading platform called Bitso has recently attracted USD 250 million to its coffers in a funding round that catapults the startup’s valuation above USD 1 billion, giving it the coveted and rare unicorn status in the country.

Given the emerging nature of the cryptocurrency and blockchain space, being crowned a unicorn is a major achievement and a testament to the willingness of venture capitalists to direct funds in the direction of the bitcoin market. El Salvador, meanwhile, has become the talk of the town after announcing that it wants to make bitcoin a legal payment method.

El Salvador’s Bitcoin Push

El Salvador has been a bright spot in the cryptocurrency market even as the bitcoin price has fallen from its highest level of the year. During a bitcoin conference in Miami, Fla. in early June, El Salvador President Nayib Bukele became the main event when he announced via a video that the country is looking to make bitcoin legal tender.

The government has teamed up with Chicago-based blockchain startup Strike to prepare the payment infrastructure for the shift to digital currencies. President Nayib touted the adoption of bitcoin as legal tender as key to streamlining the process for the Salvadoran diaspora living abroad to send remittances to households in their home country.

Remittance payments are a major part of the country’s economy and represent almost one-quarter of its GDP, affecting some 360,000 families. Migrants sent USD 5.92 billion in remittances to El Salvador during the pandemic year. The flow of money transfers to Salvadoran families slowed down at the height of the pandemic, mainly April 2020 when remittances plummeted 40%, before picking up again mid-year.

El Salvador’s bitcoin push is facing some potential regulatory hurdles from the very organization that it looked to for help during the height of the pandemic. The International Monetary Fund (IMF) is not sold on the Latin American nation’s plans to make bitcoin a legal payment method, saying that it is worried about the legal and economic ramifications. IMF officials will continue to engage with Salvadoran officials about the bitcoin initiative.

Meanwhile, the bitcoin proposal could throw a wrench into a separate agreement between El Salvador and the IMF in which the regulatory body was poised to provide a USD 1 billion loan program to the country. The IMF also provided emergency funding to the nation during the pandemic year separate from the loan that it has most recently requested.

While there are still regulatory hurdles that El Salvador will have to jump through in order to make this change, the sentiment is viewed as being extremely bullish for the bitcoin price. Not only that, but market watchers suggest that Central America’s smallest country has the potential to influence other nations for bitcoin adoption.

Sustainable Bitcoin Mining

El Salvador not only is looking to strengthen bitcoin’s use case as a payment method, but it also wants to help solve one of the issues that the cryptocurrency industry is facing. El Salvador, which is known as the land of volcanoes, has offered to use its resources to help make the process of mining more bitcoins more environmentally friendly.

Bitcoin mining or the way by which transactions are completed on the blockchain and new bitcoins are created is an energy-intensive process. After Tesla CEO Elon Musk recently called bitcoin mining out for its carbon footprint, as it typically relies on dirty fossil fuels such as coal to get the job done, El Salvador is swinging back. El Salvador has stepped in and is exploring the possibility of selling volcano-fueled power to miners as an energy-efficient way to mine bitcoins.

According to social media accounts, El Salvador’s decision to make bitcoin a legal payment option started with local communities who for the past couple of years have been working to get local storefronts to accept bitcoin payments on an individual basis. This effort has since blossomed, and industry leaders like Anthony Pompliano, who is behind Pomp Investments, are expecting that other countries will follow in the footsteps of El Salvador. 

Mexico’s Bitcoin Strides

Mexico, where cash is the primary payment method, is also experiencing greater bitcoin adoption. To that end, Bitso, a Mexico City-based cryptocurrency trading platform, has become one of the country’s latest unicorn startups after reaching a valuation of more than USD 1 billion. 

Bitso raised USD 250 million in a Series C funding round with a valuation of USD 2.2 billion attached, thrusting the startup into unicorn status. Bitso attracted several notable venture capital firms to the round, including Panter Capital, Tiger Global, Paradigm, Coatue, Valor Capital Group, and QED. As of year-end 2020, Bitso had more than 1 million users mostly across Mexico and Argentina.

While Bitso is considered the most popular cryptocurrency trading platform in the region, it has not been able to escape scandals that can accompany this loosely regulated market altogether.  Bitso was reportedly the trading platform of choice for some bad actors participating in money laundering among drug cartels looking to stash their funds. But Mexico is looking to strengthen its rules to make it more difficult for criminals to use bitcoin.

Mexico is looking to create a regulatory framework by which cryptocurrency and blockchain startups can operate, which has the potential to give venture capitalists even more confidence to back these startups. Mexican Congressman-elect Eduardo Murat Hinojosa has said that he plans to introduce a legal framework for cryptocurrencies to the lower house of Congress.

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Latin America’s bitcoin profile on the rise thanks to Mexico and El Salvador 4

Latin America and Bitcoin

As the Latin American region (including the Dominican Republic, Haiti, and others) begins to make bitcoin adoption more pervasive, the populations of these countries are gaining exposure to a new way to create and store wealth. Cryptocurrencies like bitcoin remain a volatile asset class where the price can swing dramatically in a short period. Compared to the hyperinflation and slow economic growth that countries in the region are experiencing, however, bitcoin offers them hope for technological innovation, more job opportunities, and greater financial inclusion that has been missing.

Solar-powered Bitcoin Mining by Blockstream to see investment from Square of $5M

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Bitcoin mining might be facing severe cases of crackdowns in some parts of the world, the innovation to make the process have a less adverse effect on the environment continues.

In pursuit of bringing in sustainable methods for the same, the Jack Dorsey-led financial services company Square is all set to team up with blockchain technology provider Blockstream Mining to build an open-source, solar-powered bitcoin mining facility.

This facility will be situated at an existing Blockstream location. in the United States.

According to the official press release, Square plans to inject $5 million in the facility, with Blockstream that is focused on providing infrastructure and expertise to develop and manage the project for Bitcoin mining. This facility in question will be a “proof-of-concept for a 100% renewable energy Bitcoin mine at scale.”

Blockstream stated,

“We hope to show that a renewable mining facility in the real world is not only possible but also prove empirically that Bitcoin accelerates the world toward a sustainable future.”

The partnership, as confirmed by Square, is essentially a part of its Bitcoin Clean Energy Investment Initiative that was launched in December 2021 to promote companies engaged in reducing carbon footprint by the cryptocurrency ecosystem. Through this initiative, the two platforms will also roll out a “public-facing dashboard” which will act as a transparent case study for renewable energy as well as mining of the crypto.

Can Bitcoin really go green?

The debate surrounding the cryptocurrency’s reliance on non-renewable energy isn’t new. However, of late the discussions related to the environmental impact of mining for the world’s largest cryptocurrency have come under immense scrutiny, thanks to Elon Musk.

There’s no denying that it does consume a lot of energy. This is a common concern among the BTC institutions and retail traders alike.

Several developers and academicians have given their fresh dose of perspective on the controversial subject as the Bitcoin mining debate has gained traction once again. Some are of the opinion that looking for other ways and putting a stop to the increasing use of real physical resources for mining is going on a wild goose chase. However, there are those, who are trying to make Bitcoin green.

Recently, Norway’s second-richest person, and oilfield services billionaire Kjell Inge Røk­ke, had launched a new venture called Seetee. The maon objective of the company’s goal is to set up BTC min­ing op­er­a­tions that “trans­fer strand­ed or in­ter­mit­tent elec­tric­i­ty with­out sta­ble de­mand lo­cal­ly—wind, so­lar, hy­dro pow­er— to eco­nom­ic as­sets that can be used any­where.”

In short, it intends to locate Bitcoin mining centers in those places where renewable energy farms essentially produce electricity in surplus especially when there is low demand.

Former SEC exec who rejected Bitcoin ETFs now helping a firm to get one approved

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There is nothing like the cryptocurrency industry. Hilarious fad tokens may have found a place but not Bitcoin ETF. At least not in the United States.

Regulatory approval of a Bitcoin exchange-traded fund [ETF] in the US represents the holy grail. The Securities and Exchange Commission [SEC] under former Chairman Jay Clayton had rejected Bitcoin ETFs. However, he does not hold the position anymore. Currently, Clayton is serving as a crypto advisor for asset manager One River.

Interestingly, the hedge fund has now filed for a Bitcoin ETF with the regulatory watchdogs of the country.

Clayton had previously stated that the US should never have an ETF on any stock exchange of the country citing market manipulation concerns. However, he is now helping One River to get one.

One River’s Bitcoin ETF

According to the asset management platform’s S-1 filing, dubbed ‘One River Carbon Neutral Bitcoin Trust’ would be listed on the New York Stock Exchange [NYSE]. The ETF plans to offset the carbon footprint associated with the cryptocurrency by buying and disposing of carbon credits necessary to account for the estimated carbon emissions related to the bitcoins held by the Trust.

It further stated that the Trust has entered into an agreement with LIRDES S.A., an Uruguay-based firm, to purchase MCO2 tokens representing certified reductions in greenhouse gas emissions. It also said,

“The MCO2 tokens issued by Moss are assets encrypted and tokenized utilizing blockchain technology and are stored on a registry managed by Verra, an organization that establishes and manages standards and programs in connection with carbon credits [“Verra”].”

As per the filing, the trust will not sell and or buy the cryptocurrency directly. Rather, it plans on leveraging third parties to offer the crypto assets via something called, “in-kind” transactions which involve the selling and redeeming of shares. In addition, Coinbase Custody has joined hands as the custodian for the ETF’s bitcoin assets.

Fresh Drive Above $60K Reignites Bitcoin Mining And Its Environmental Impact Debate

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Bitcoin mining energy consumption debate is on the table yet again.

Bitcoin’s reign above $60K has reinvigorated debates surrounding negative environmental impact. Concerns regarding mining the cryptocurrency being harmful to the environment because it utilizes substantial energy have made rounds as experts continued to weigh in the matter.

The latest one to chime in the matter that has been making rounds was Bixin Group’s Mustafa Yilham. Bixin currently manages nearly 2.5% of the total global Bitcoin network through its mining operation. Yilham opined that a Bitcoin miner tries to use renewable excessive energy because they are environmentally friendly and cheaper.

He elaborated his first statement by explaining the migratory nature of Chinese miners wherein mining operations are mostly based in Sichuan. In winter, on the other hand, Bitcoin mining operations are moved to Xinjiang/Inner Mongolia where reportedly 43.4% of the energy on its electricity grid is renewable. During the rainy season, Sichuan produces “excessive hydro-power”. He Yiham concluded that,

“Bitcoin is probably one of the MOST Environmentally-friendly financial industries. Because we can migrate during seasons and maintain 100% renewable during summer and over 40% renewable during winter. The renewable rate will further increase soon.”

Bitcoin Mining and Gas-flare Recapturing

Bitcoin mining is also helping resolve gas-flare issues. Here’s how:

Gas flaring has been a concerning issue to the oil and gas industry. A combustion of associated gas is flared into the air which is generated during the processing of natural gas. This byproduct can be captured by the Bitcoin who can then use it for energy instead of releasing it into the open door.

This is not the first time that Bitcoin’s strikingly high carbon footprint has been a matter of debate. By its very nature, Bitcoin mining needs a lot of electricity along with sophisticated devices. However, with regards to energy consumption, ARK Investment Management revealed that traditional banking consumed 2.34 billion gigajoules (GJ) per year while gold mining 500 million GJ. Bitcoin, on the other hand, consumes 184 million GJ, less than 10% and 40% of traditional banking and gold mining, respectively.

Further debunking the misperceptions, ARK’s research stated,

“Additionally, Bitcoin mining’s estimated dollar cost per GJ expended is 40 times more efficient than that of traditional banking and 10 times more efficient than that of gold mining.”

Square To Battle Climate Change; $10M Allocated For Firms That Aid Greener Bitcoin Mining

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Prominent cryptocurrency platform, Square has been making headlines following an array of developments. Jack Dorsey’s interest in crypto was transformed into reality with notable payments platform, Square. Once again, Dorsey’s Square platform had made it to the headlines following its recent development in the field of crypto.

Square To Aid War Against Climate Change

CEO and Founder of prominent social media platform, Twitter, Jack Dorsey seems to be embracing his philanthropic side. Recently, Square rolled out a non-profit crypto platform, Cryptocurrency Open Patent Alliance [COPA] that stops firms from hiding away their crypto innovations in patents. Now, Square seems to be taking an interest in the battle against climate change.

While everyone across the globe has been fighting climate change, Square has revealed in a recent blog post that this will soon be part of this engagement. The blog post pointed out that Square was rolling out the “Bitcoin Clean Energy Investment Initiative”. With this initiative, the platform hopes to offer aid to firms that fuel the adoption as well as the effectiveness of renewables across the Bitcoin sphere. To carry this initiative out in full force, Square had reportedly joined hands with a prominent platform that has been fending off climate change, Watershed.

Square has allocated a total of $10 million as part of the initiative. Speaking about the same, Jack Dorsey said,

“We believe that cryptocurrency will eventually be powered completely by clean power, eliminating its carbon footprint and driving adoption of renewables globally.”

The payments giant is aiming at achieving a net-zero carbon target. This would further be accomplished by depreciating the carbon footprint along with the scaling of a verified carbon removal portfolio. This portfolio will be rolled out into the market in the Q1 of 2021.

The initiative is said to extend support to platforms that incorporate green energy tech into their Bitcoin mining protocols. Additionally, the stimulation of clean power is also one of the goals of the initiative. With all of the aforementioned, Square with its Scope 3 emissions intends to transform into a net-zero carbon for operations by 2030.

Dorsey added,

“Published estimates indicate bitcoin already consumes a significant amount of clean energy, and we hope that Square’s investment initiative will accelerate this conversion to renewable energy.”

Not Bitcoin, But Ripple is Bad for Climate Suggests Messari’s Founder

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Climate change is real! While the world is trying to fight against climate change by implementing dainty changes into their lifestyle, issues pertaining to the same keep surging. With children starting to address these issues, certain adults have also seemed to have joined the bandwagon. The New York State Department of Financial Services is the latest to point out the risks associated with climate change.

Brad Garlinghouse Calls Out Bitcoin

In a recent tweet, Linda Lacewell, the Superintendent of the New York State Department of Financial Services [NYDFS] urged financial institutions similar to the NYDFS to address the financial risks pertaining to climate change. Lacewell included the crypto industry on the list as well. Aiding NYDFS’s latest initiative, Ripple’s CEO Brad Garlinghouse retweeted Lacewell’s tweet and revealed his concerns with regard to Bitcoin’s energy consumption along with its carbon footprint.

Garlinghouse’s tweet read,

Lacewell also suggested that crypto mining platforms were required to practice transparency and give out information regarding the location as well as the equipment they employ.

Bitcoin has been time again called out for its mining process that consumes a lot of electricity. Reports even suggested that Bitcoin used electricity about 0.21% of the world’s total supply. The total energy consumed by Bitcoin reportedly averaged to that of Switzerland.

However, it seemed like Bitcoin had more supporters than Ripple. Several including Ryan Selkis, the founder of Messari Crypto pointed out that running Ripple nodes could have been a much worse problem to the already frightening climate change issue. He stated,

“Climate change would actually be much worse if we all had to run Ripple nodes because you need an institutional server farm to audit the XRP blockchain that only Ripple can afford to run.”

Kraken’s Pierre Rochard also shared his thoughts on the carbon impact of cryptocurrencies. The strategist pointed out that Bitcoin mining as well as consumption of electricity has no carbon impact. However, the production of electricity has a carbon impact.