Bank of Canada says it will go green on proposed CBDC


TL;DR Breakdown

  • Bank of Canada CBDC to rely on renewable energy sources
  • Move to make renewable energy the source of power for mining crypto

Timothy Lane, the Deputy Governor of the Bank of Canada, has said that eventually when the country’s Central Bank Digital Currency (CBDC) launches it would be more environmentally friendly than Bitcoin and other rivals.

However, the bank has no plans to launch its CBDC anytime soon, even though it has begun working on the project.

Canada’s CBDC plans

The deputy governor said that the CBDC would rely on already existing trust in Canada’s fiat currency including its potential environmental impact. Instead of trusting a proof-of-work consensus algorithm used by Bitcoin and Ethereum, citizens would trust their central bank much as they always have, he said.

Lane said this against the backdrop of recent conversations around concerns of Bitcoin and its many problems to the environment.

Elon Musk, the world’s second richest man, raised concerns over the environmental problem of mining BTC and suspended using it as a means of payment for Tesla cars. His concerns crashed prices in the crypto market.

The Bank of Canada deputy governor further argued that despite efforts already in progress to make renewable energy sources for crypto mining, Lane says, however, the fact that Bitcoin is consuming excessive amounts of energy remains constant.

He eventually disclosed that for now, there is no set date or period when the Canda CBDC would launch but notes that the bank may have to hasten up when private cryptos become widely adopted and begin replacing the bank’s fiat currency.

Making renewable energy source of power for crypto mining

Elon Musk, Michael Saylor, among others, met with Bitcoin miners in North America to promote the use of renewable energy for BTC mining activities during the week.

After the meeting, the billionaire disclosed that miners are now committed to publishing current & planned renewable usage & to ask miners World Wide to do so. He described it as Potentially promising. Other details of the meeting were not disclosed other than the fact that miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide.

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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