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The European Union Readies Vote on the Ban of Proof-Of-Work (PoW) Cryptocurrency Mining

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. 

The cryptocurrency market, as a result of this, could face an overall drop in prices.

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. 

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. 

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.