The central bank of Turkey has issued a report on current regulatory efforts, which for the first time raised concerns about the impact of Bitcoin on the environment.
Turkey’s central bank, currently working with other government agencies to regulate cryptocurrencies, has submitted a report to the Turkish parliament detailing its views on the industry. The Central Bank report is not publicly available, but was obtained by local media outlet Bloomberg HT.
The document is addressed to the Parliamentary Commission on the Internet, which develops laws regarding everything related to the Internet, including cryptocurrency. Turkey is now in the process of developing rules for the cryptocurrency industry. The use of digital assets for payments is already prohibited, however, the Central Bank of Turkey rules out a complete ban on cryptocurrencies in the country.
“Cryptocurrency mining leads to high energy consumption, which contributes to global warming,” the Turkish Central Bank said in a report.
Thus, the Central Bank supported a wave of criticism regarding the environmental harm that Bitcoin mining causes. The founder of Ark Investment Management recently said that bitcoin, which has lost almost 50% of its value in the past few weeks, has come under pressure from institutional investors worried about the environmental impact of mining.
Elon Musk drew attention to the mining situation, who repeatedly provoked price changes in the cryptocurrency markets with his statements. He stated that Tesla is suspending accepting BTC payments due to concerns about the environmental impact of Bitcoin mining.
North American miners created the Bitcoin Mining Council to promote sustainable energy and transparency in the industry. However, this initiative drew criticism from community members – many felt that it was contrary to the spirit of decentralization of the network.
It is unclear what form cryptocurrency regulation will take in Turkey, but it looks like lawmakers have added Bitcoin’s carbon footprint to other concerns that regulators are worried about.
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