The Senate passed a bill that will halt new permits for certain fossil fuel power plants to be used in Bitcoin mining. The measure also initiates a study on the environmental impact mining facilities are having in the state.
Talks languished until late in the evening as the state Senate neared its legislative deadline deadline. The moratorium would come with greater environmental or economic costs.
Hochul received a $ 40,000 donation last month from a chief executive of a company that runs a former aluminum plant turned crypto-mining facility. The bill will face another test as it heads to Governor Kathy hochul to sign or veto.
After China instituted new restrictions on Bitcoin mining last year, many mining operations have set up shop in the US. New York has abundant hydroelectricity and retired fossil fuel plants that can be revived back up to mine Bitcoin.
Some residents and environmental advocates worry that revived fossil fuel plants will damage ecosystems. Bitcoin’s help will derail the state’s efforts to tackle climate change.
New permits for cryptocurrency mining operations that use a energy-hungry approach to verify transactions on the blockchain. Proof-Of-Work underpins the two biggest cryptocurrencies – Bitcoin and Ethereum.
If the Bitcoin network was its own nation, it would rank 32nd in the world in annual electricity use. In return, they earn crypto tokens.
Energy demand is a threat to the climate goals set by New York state in 2019. The state committed the state to an 85 percent reduction in greenhouse gas emissions by 2050.
Greenidge generating station in New York’s finger lakes region is a flashpoint for residents worried about cryptocurrency mining.