Greenpeace Raises Environmental Concerns Over Bitcoin ETF Approval
Greenpeace has voiced strong opposition to the recent approval by the U.S. Securities and Exchange Commission (SEC) of several bitcoin exchange-traded funds (ETFs). The environmental defence organization views this move as detrimental, labelling it as a “loss for both the climate and society.”Rolf Skar, national campaigns director for Greenpeace USA, points out a significant contradiction. With Bitcoin becoming more prominent in mainstream finance, its well-known energy-intensive nature poses significant environmental concerns.
The decision by leading financial firms to support bitcoin ETFs goes beyond mere financial implications; it has significant environmental implications. As Bitcoin’s popularity grows through these ETFs, so does its carbon emission, which is largely driven by the energy-intensive mining process. This situation presents a crucial crossroads, balancing the drive for financial innovation with the urgent need for environmental sustainability. Greenpeace’s outspoken disapproval of bitcoin ETFs serves as a critical wake-up call for the financial sector to adopt investment and technology approaches that are more sensitive to environmental impacts.
Greenpeace Urges Bitcoin ETF Sponsors to Address Eco-Impacts
Following the recent approval of bitcoin ETFs, Greenpeace is calling on influential players such as Blackrock and Fidelity to address the environmental challenges posed by their products. Their stance is firm. As major players in the bitcoin market through their ETFs, these companies must now assume responsibility for mitigating the environmental damage caused by the cryptocurrency. Greenpeace emphasizes the direct link between the increasing market value of Bitcoin and its escalating ecological impact.
Following the ETF approvals, the expected rise in the price of bitcoin is likely to boost mining activity. This will result in higher carbon emission processes and greater water consumption, primarily due to reliance on fossil fuels. This increase in mining activities poses a significant challenge to global efforts in combating climate problems.
Greenpeace Bitcoin Stance: Rejecting Donations and Pushing for Code Change Due to Environmental Concerns
To provide some context: While Bitcoin has been around since 2009, it wasn’t until 2021 that the Greenpeace organization decided to stop accepting Bitcoin donations, citing the cryptocurrency’s detrimental impact on the environment. Their stance goes beyond rejection; they advocate for significant changes in Bitcoin’s underlying code.
Transitioning from the current proof-of-work model to a proof-of-stake system is their top priority. This pivotal change is not just about reducing the energy demand associated with Bitcoin transactions and mining. It’s about aligning digital currency with green practices to ensure that technological progress doesn’t come with the planet’s health loss.
Greenpeace’s approach underscores the importance of developing environmentally sound and sustainable technologies. Their stance is indicative of a growing awareness in the environmental community about the significant impact of emerging technologies on global climate problems.
