American cryptocurrency exchange Gemini has bought carbon credits to help decarbonize Bitcoin amid growing clamor that the cryptocurrency is not environmentally friendly.
Through Gemini Green, a long-term initiative to incorporate climate-conscious practices into its business, the trading platform has partnered with Climate Vault, a non-profit organization associated with the University of Chicago.
The exchange has purchased carbon permits for nearly 350,000 metric tons of carbon to help offset carbon emissions from the Bitcoin network. The carbon credits will help offset the non-renewable energy consumed by miners on the Bitcoin network to secure the bitcoin that Gemini holds.
“As bitcoin emerges as a dominant store of value, it is imperative that we embed sustainability for future generations. We are proud to partner with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonization of bitcoin,” he said Tyler. Winklevoss, CEO of Gemini.
Concerns about Bitcoin’s energy use have sparked a major polarizing debate in recent weeks, culminating in a regulatory crackdown in China. The Asian giant has issued a strong warning, forcing miners to halt their operations in the country, prompting a massive exodus of miners of all levels seeking a safe haven elsewhere. While established miners are moving to Kazakhstan or the US, a growing number of retail miners are putting their mining machines up for sale.
According to Gemini’s announcement, the exchange has allocated $ 1 million through the Gemini Opportunity Fund to support businesses, projects, and nonprofits that focus on sustainability in the crypto industry. Through a series of approaches coordinated by Climate Vault, the funds will go towards financing companies that develop novel technologies that can help remove CO2 from the atmosphere.
The attempt to eliminate energy use and emissions associated with Bitcoin leads to a charge for adopting sustainable energy in mining operations across the board.
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