The cryptocurrency industry could soon face some challenges depending on the European Union’s consideration into banning Proof-of-Work (PoW) cryptocurrency mining.
EU to Ban Proof-of-Work (PoW) Crypto?
The European Union has announced that it will vote on a cryptocurrency framework proposal which could result in the ban of Proof of Work (PoW) consensus cryptocurrencies.Â
The cryptocurrency market, as a result of this, could face an overall drop in prices.
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Members of the European Union will vote on a Markets in Crypto-Assets (MiCA) framework on Monday, March 14th, and the consensus among experts is that the outcome of the vote is too close to call.
If the proposal does end up succeeding, it could potentially lead to Bitcoin (BTC), Ethereum (ETH) or any other cryptocurrency utilizing a Proof of Work consensus mechanism being phased out.
The overall proposal would affect all countries which are members of the European union.Â
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Meanwhile, in the United States, Biden unveiled his crypto oversight plans.
On the Flipside
- Ethereum has been working on transforming the network into Ethereum 2.0 for the past few years, which would allow the network to move to the ecologically friendlier Proof of Stake (PoS) consensus mechanism.
Why You Should Care
The main motivators behind the ban are the circumvention of economic sanctions, as well as environmental concerns. The last-minute amendments were specifically put forward due to a belief that Bitcoin’s carbon footprint breaks the EU’s environmental standards.Â
