New York governor signs bill to limit cryptocurrency mining

 

New York governor signs bill to limit cryptocurrency mining

The Governor of New York signed the Cryptocurrency Mining Suppression Act, which operates on carbon-based energy sources

Cryptocurrency mining is now effectively prohibited in NewYork, unless mining operations are supported by 100 per cent of renewable energy sources.

It comes after

New York Governor Cathy Hoshole signed a law Tuesday banning some bitcoin mining operations that operate on carbon-based energy sources, CNBC reported.

This step is notable as authorities around the world seek to eliminate the environmental impact and heavy use of electricity associated with cryptocurrency mining operations.

Prohibition of mining

Back in June

• New York lawmakers passed a two-year ban bill

• and some encrypted mining operations that operate

• on carbon-based energy sources.

• After the passage of this bill

Governor Cathy Hoshol had the power either to

sign the bill into law or to overturn it.

By signing it into law on Tuesday

1. it makes New York the first U.S.
2. state to ban blockchain
3. technology infrastructure.

America, which is said to be home to 38% of the world's cryptocurrency miners, is likely to see a chain reaction.

"It's the first of its kind in the country," Hoshol was quoted by CNBC in a legal filing detailing her decision.

The governor added that it was a major step for New York.

The state is looking to reduce its carbon footprint.

by taking strict action against mines that rely on fossil fuel-burning power plants for their electricity.

But not everyone supported the ban.

CNBC quoted the Digital Chamber of Commerce as saying in a statement

Consent will set a dangerous precedent in determining who may or may not use the Authority in the State of New York.

According to Perian Buring of the Digital Chamber of Commerce, New York's economy will be weakened by companies being forced to take jobs elsewhere.

Crypto Mining

Essentially

cryptocurrencies are created when high-power computers compete

• With other machines to solve complex sports puzzles

• a process known as mining.

• Mining to prove work requires sophisticated equipment

• The process of creating cryptocurrencies consumes a lot of electricity.

Some cryptocurrencies such as ethereum turn

into a less energy-intensive process.

according to the most recent U.S. data.

Energy Information Administration

• As is currently the case

• one third of New York's in-country generation

• comes from renewable energy sources.

It should be noted that New York's goal of obtaining 100% carbon-free electricity includes its nuclear power plants. 

New York also produces more hydroelectric

state east of the Rockies in terms of energy production.

Historically

New York is referred to as a U.S.

• state unfriendly to cryptocurrency mining operations.

• Other US states are said to be more friendly with encrypted mining authorities

• Georgia, North Carolina, North Dakota, Texas, and Wyoming are among them.