Cryptocurrency exchange founder Sam Bankman-Fried believes that the transition from Proof-of-Work to Proof-of-Stake consensus will ensure the global scaling of cryptocurrencies.
Sam Bankman-Fried, CEO of cryptocurrency trading platform FTX, said during an interview with Peter Singer for the Camp Ethereal 2022 summit that reducing the carbon footprint of cryptocurrency mining is “necessary” right now.
Fried stated that Bitcoin and Ethereum with their Proof of Work (PoW) consensus are not efficient in the “long term”. He explained that the increased power consumption of mining these cryptocurrencies results in high transaction fees. Fried added that alternative proof-of-stake (PoS) protocols “have virtually no environmental impact.”
“Ultimately, we must live in a world where most of the mining of cryptocurrencies is generated using Proof-of-Stake. I think this is one of the most successful solutions for scaling cryptocurrencies. Since cryptocurrencies on PoW are now under significant economic and political pressure, this needs to be moved away.”
In the interview, they talked about the sanctions pressure of the US and the EU on Russia, and the potential possibility of circumventing sanctions through cryptocurrencies. Bankman-Frid noted that it is impossible for institutional companies to use cryptocurrencies to circumvent sanctions.
“We have not seen any attempts by Russia to move money through cryptocurrencies,” the FTX CEO replied. “It actually surprises me a little.”
At the same time, he sees a good opportunity for ordinary citizens of Russia and Ukraine to protect their funds from the economic crisis using cryptocurrencies. In particular, cryptocurrencies will be effective where the majority of the population is not covered by banking services. According to him, he is glad to see that cryptocurrencies can become a “lifeline” for ordinary people.
Recently, a bill to suspend BTC mining in New York received additional support from lawmakers. Two more members of the New York State Assembly signed as co-sponsors of a piece of legislation that imposes a three-year moratorium on bitcoin mining across the state. In Europe, on the contrary, legislators have removed the provision banning bitcoin and other crypto assets on PoW from the cryptocurrency regulation law.
Source: Bits
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