Oleg Galeev

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Bank of Canada: Canada’s CBDC Will Be Greener Than Bitcoin

Last updated July 24, 2021

Timothy Lane, Bank of Canada’s Deputy Governor said on Wednesday, May 27, said that any digital cryptocurrency that may offer in the future will be more eco-friendly than bitcoin. 

They added that the bank has studied the environmental impact that crypto mining their currency has, as well as bitcoin and other cryptocurrencies. According to the Cambridge Electricity Consumption Index, crypto mining bitcoin consumes more energy yearly than some countries like the Netherlands, this due to the solving of complex mathematical equations to unearth one of the finite digital coins.   

The equipment to solve these complex mathematical equations like GPU (graphics processing unit) or ASIC ( Application Specific Integrated Circuit) consumes big amounts of energy, this summing that it is a process that lots of supercomputers around the world use at the same time to mine digital tokens creates a considerable environmental problem. 

Was this excessive amount of energy and damage to the environment made Elon Musk announced last month that Tesla stopped accepting bitcoin as payment for their vehicles in support of the environmental impact that mining produces. He also tweeted he spoke to several bitcoin miners to publish their current and planned usage of clean energy and asked their counterparts to do the same.

Lane´s fellow panelists realized that there is a push to use more clean renewable energy in the mining of bitcoin. The Bank of Canada augmented that this new currency comes as a green initiative from the vanadian crypto mining community, they also said that CBDC will have a good impact on people’s trust as other cryptocurrencies lack the level of trust of people. The Chinese regulation updated recently on the ban of the use of crypto coins in payments left to fear, doubt, and uncertainty in the crypto investors.

Although first, it is necessary for the authority from Parliament to do it. Lane said that offering its digital currency does not yet seem a need for the bank. 

After all this information the BoC deputy´s statements indicate that CBDC might coexist with Bitcoin, but it could make opting for a green mining procedure unavoidable in the long term. 

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Oleg is a Canadian citizen & crypto expert who has been trading since 2016. He started out with Coinbase, Kraken and Peer-to-Peer exchanges. After some time, centralized exchanges started charging crazy fees to their users.

He decided to review different crypto exchanges that operate in Canada and start a Youtube channel in order to educate Canadians on what kinds of things are going inside each one while giving them unbiased advice. On top of that, Oleg also has experience with NFT, airdrops, and crypto staking and he is constantly checking on new crypto assets.

His writing has been featured in popular Canadian media sources such as Toronto Sun and Ottawa Citizen.