The cryptocurrency ecosystem is moving towards a cleaner, greener future.
Most of the energy used to mine crypto is already from renewable sources. Instead of harming the planet, crypto and blockchain can actually be a force for the environment.
The debate about Bitcoin and its carbon footprint has centered on the energy they consume, says Bryan Ventura, chairman of BlockchainNZ.
Cryptocurrency is a means of payment that can be exchanged for goods and services online. Many companies have issued their own currencies, often referred to as tokens, and these can be exchanged for goods or services that the company offers.
Businesses are also creating new financial products and services using blockchain technology or decentralized finance. New forms of virtual assets with non-fungible tokens are also being created. Cryptocurrencies, decentralized finance, and virtual assets all work with a technology called blockchain.
“The adoption of cryptocurrencies increased significantly during the Covid pandemic, when private investors, public companies and individuals with low bank accounts recognized the benefits of digital currencies.
“Regulators are struggling to keep up with this growth and can limit financial inclusion by applying rules to crypto markets that are not suitable for this purpose.
“By looking at past ages of innovation, regulators can work together to adjust rules and guidelines to support open competition and rapid innovation in the cryptocurrency sector.
“But Bitcoin consumes resources. As with any other energy-consuming industry, it is up to the crypto community to recognize and address these environmental concerns.
“Governments around the world are trying to tighten regulation of cryptocurrencies and virtual assets, which can extend to decentralized finance, non-fungible tokens, and possibly other concepts using blockchain technology. There is a risk that Aotearoa New Zealand will follow suit.
“It can inadvertently hinder our virtual asset industry. Regulation and compliance are also relevant to the access of New Zealand’s virtual asset business to bank accounts. “
BlockchainNZ, which is part of the NZTech Alliance, can help governments understand the basics, from how Bitcoin / Blockchain works to smart contracts, security tokens and decentralized autonomous organizations.
Parliament’s Special Committee on Finances and Expenditures is currently examining over 260 submissions on the nature, effects and risks of cryptocurrencies. Submissions were closed earlier this month.
Cryptocurrencies are an emerging source of innovation that promises to democratize financial markets. Some cryptocurrencies have the potential to provide better wealth storage than official currencies.
The Reserve Bank says in its post that products like Bitcoin are supposedly an alternative form of money, but have rarely been used as a means of payment.
However, BlockchainNZ told the special committee that the total value of cryptocurrencies was nearly $ 3 trillion in August and that most cryptocurrency activity in New Zealand is subject to applicable laws.
Dozens of individuals and companies in the cryptocurrency industry have spoken out in favor of cryptocurrencies.
The BlockchainNZ filing encourages the government to work with local New Zealand industry to establish standards for virtual asset service providers (VASPs), Companies that manage cryptocurrencies for people and provide education about the risks and how cryptocurrencies should be managed by these trusted third parties.
“It is important to balance the risk reduction associated with cryptocurrencies and VASPs against the importance of maintaining a legal and regulatory environment that does not overly stifle New Zealand innovation and deliberately prevent compliant companies from operating.
“Achieving this equilibrium would have positive effects on the economy as a whole. B. New Zealand tax base growth and employment, consumer protection and an overall reduction in money laundering and terrorist financing risk. “
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source https://www.bisayanews.com/2021/09/20/cryptocurrency-heading-towards-a-greener-future/
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