Documents obtained through a freedom of information request have revealed that European Union officials discussed banning Bitcoin trading during a debate on a proposal to outlaw Proof of Work mining.
According to a report published by the German digital culture organisation Netzpolitik, EU officials went so far as to advise that an outright ban on trading Bitcoin (BTC) be imposed in order to reduce its overall energy use.
EU officials force PoS switch
The most concerning words, in the opinion of the crypto community, came from a document detailing the minutes of an EU meeting with Sweden’s financial supervisor and an environmental protection agency.
In it, officials say that regulators are pressuring the Bitcoin community to transition to a Proof of Stake (PoS) method instead of the present energy-intensive Proof of Work (PoW).
Another unidentified speaker indicated that the EU may impose a blanket ban on trading any crypto assets based on the PoW algorithm.
Total Bitcoin ban
Officials were mostly unconcerned when discussing the potential impact of an outright Bitcoin ban on investors and retail traders, noting that all Bitcoin investors are fully aware of the downside risk.
This revelation comes as environmental organisations and regulators continue to be concerned about Bitcoin’s energy use. Bitcoin mining now consumes approximately 139 terawatt-hours (Twh) of electricity each year, according to the University of Cambridge’s Bitcoin Electricity Consumption Index. According to Statista, the entire UK will only use an estimated 265 Twh in 2021.
The EU’s Economic and Monetary Affairs Committee recently voted against proposals that would have prohibited PoW mining. These records, however, provide a unique insight into the lengths to which some EU officials are willing to go in order to reduce mining-related energy usage.
While it appears that PoS cryptocurrencies will avoid broad regulatory action in the foreseeable future, Bitcoin mining will remain a contentious topic in the EU.