The IMF has taken aim at Bitcoin’s energy use in its new report
According to a new report published by the International Monetary Fund, Bitcoin, the world’s largest cryptocurrency, consumes a million times more energy than credit cards. Its calculations are based on academic and private-sector publications.
The report, which was panned by Xavier Lavayssièr, Germán Villegas Bauer, and Itai Agur, shows also that central bank digital currencies (CBDCs) and some private cryptocurrencies are actually more efficient than traditional payment systems.
As of today, credit and debit cards account for the vast majority of all cashless transactions.
The paper makes a case for ditching the proof-of-work consensus system and using permissioned systems in order to major a giant green leap.
Ethereum, the second-largest blockchain, is expected to transition to proof-of-stake later this year, which will reduce its energy consumption by a whopping 99.95%.
The IMF researchers conclude that power usage should be also one of the considerations in debates about the future of money.