The ECB hinted at the future growth of ETH due to the environmental friendliness of the blockchain
The European Central Bank conducted a study on the environmental friendliness of blockchains, comparing bitcoin with an internal combustion engine
The carbon footprint of cryptocurrencies like bitcoin (BTC) and ether (ETH) is likely to affect their future value when authorities around the world begin to implement a policy of switching to renewable energy. These are the results of a study conducted by analysts of the European Central Bank (ECB).
In particular, the researchers drew a parallel with how governments decided to promote the topic of switching to renewable energy. Instead of banning cars with an internal combustion engine (ICE), the authorities encourage projects with a focus on "green energy".
The bitcoin blockchain based on the Proof-of-Work algorithm, as noted in the ECB, is now similar to cars with internal combustion engines. Therefore, blockchains based on the Proof-of-Stake algorithm, to which the Ethereum network plans to switch, will receive great support.
The ECB believes that by 2025, the European Union will still come to a consensus on the regulation of blockchains. At the same time, presumably, new rules for the cryptocurrency market will come into force as part of the first package of the directive called MiCA (Markets in Crypto-assets).
Earlier, the European Union agreed on the requirements for the cryptocurrency market. According to the innovations, issuers of stablecoins should open representative offices in the EU and have a "sufficiently liquid reserve". They must also register with a European Banking Organization. At the same time, cryptocurrencies without issuers, like bitcoin (BTC), are spared from regulatory oversight. However, ECB Head Christine Lagarde has already hinted that this omission in the EU can be corrected as part of the second MiCA package.
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https://coin-signal.com/cryptonews/the-ecb-hinted-at-the-future-growth-of-eth-due-to-the-environmental-friendliness-of-the-blockchain/
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