The Coin Leaks News: A document obtained as part of an FOI request exposes the steps European Union officials have considered to limit the use of energy by Bitcoin. Alongside requesting the biggest cryptocurrency change to a Proof of Stake verification mechanism, the document suggests the possibility of a total prohibition on trading in the cards.
EU Officials on Bitcoin
EU officials aren’t a fan of Bitcoin new documents have been released.
Digital rights group Netzpolitik released a report on Thursday that outlines the scope of anti-Bitcoin negotiations between European Union officials. A number of documents obtained via Freedom of Information requests show the extent to which discussions regarding the ban on Bitcoin trading and mining in the EU have moved forward.
A document with the minutes of the EU session with Sweden’s finance supervisor as well as an environmental agency to discuss the expansion in Bitcoin mining in Sweden. One participant asked if authorities could force Bitcoin to switch to a less energy-intensive Proof-of-Stake authentication process. The document said:
“If Ethereum is able to shift, we could legitimately request the same from BTC. We need to ‘protect’ other crypto coins that are sustainable. Don’t see [the] need to ‘protect’ the Bitcoin community.”
In the same session, the speaker asked what the EU should impose the market in a general ban cryptocurrency that are based on Bitcoin’s Proof of Work algorithm. While the answer on this issue was hidden to safeguard from the “ongoing decision-making process,” it is clear the fact that these measures were in the process of being considered.
However, the most shocking announcement came at the conclusion of the conference when officials debated the implications of an eventual prohibition on investors. “How would [the] disappearance of Bitcoin affect consumers?” One participant asked. “Participants of BTC are well aware of the volatility that comes with the risk associated with investing in the currency. Don’t require any additional protection measures.” was the message that was sent to investors in response.
Participants in the discussion aren’t concerned about the tens of thousands of people around the globe who Bitcoin is an emergency line. From Ukrainians who use cryptocurrencies to help them escape conflict to Argentinians using Bitcoin to stay out of inflation, The EU appears to ignore the advantages of Bitcoin’s decentralized, peer-to–peer payments system and instead focus exclusively on the energy use of Bitcoin.
The basic lack of understanding of cryptocurrency was further exposed when one of the participants asked, “Which service does Bitcoin provide that Solana isn’t able to provide to the public? If you can show that other cryptocurrency can function without proof of work, then why isn’t Bitcoin?”
In spite of the many advantages Solana provides, it is significantly from being as centralized and secure as Bitcoin and operates primarily under the supervision by the Solana Foundation. However, Bitcoin is much more independent, allowing excess energy to be turned into an asset of value and is the most secure and uncensorable way to trade value from peer-to-peer.
The same absence of knowledge is apparent in the demands for “change the code,” which refers to the recent Greenpeace campaign to force Bitcoin to change from Proof-of-Work to Proof-of-Stake. Although this particular mantra is popular with EU political leaders and environmental groups but these groups don’t comprehend that Bitcoin isn’t strongly influenced by a single organization such as Solana. There’s no single group that can pressure to bend Bitcoin to your wishes as it is a decentralized network made up of individual players.
The document, while eye-opening, published by Netzpolitik today details the November meeting of 2021. Since then there has been a change in the EU Parliament has passed the legislation that calls for a ban of mining through Proof-of-Work. However, the document provides an important insight into EU officials’ strategies for managing Bitcoin. While Proof-of-Stake cryptocurrency appears to be safe, Bitcoin looks likely to remain a controversial subject in European political debates.