Beijing has unveiled a fresh strategy to ramp up energy efficiency, placing a strong emphasis on shutting down cryptocurrency mining operations. The city's Development and Reform Commission, along with 11 other agencies, jointly released a detailed memo outlining their dedication to imposing stricter controls on energy use and carbon emissions. The strategy highlights a shift towards more advanced energy-saving practices, aiming to promote environmental sustainability and create a greener Beijing.
This move signifies a change in China's stance towards cryptocurrencies, particularly targeting the energy-intensive nature of crypto mining. The updated policy introduces more precise measures to curb such activities, aligning with the country's broader goals of reducing environmental pollution, fostering sustainable development, and promoting technological and energy innovation. Notably, the plan includes a clause (item 18) mandating increased surveillance, evaluation, and corrective actions against mining operations to effectively eradicate virtual currency mining in line with national guidelines.
It is expected that this focused approach will lead mining activities to relocate to more covert locations or overseas as China continues to prioritize energy efficiency and carbon neutrality. Following China's initial ban on crypto mining in 2021, a significant number of Bitcoin mining ventures shifted to the United States.
In response, the U.S. Energy Information Administration (EIA) has revealed plans to carefully monitor the energy usage of cryptocurrency mining facilities. This initiative aims to gather comprehensive data on the sector's energy demands to assess its impact on the American energy landscape.
Endorsed by the White House Office of Management and Budget, this initiative comes amid growing concerns about the environmental impact of crypto mining. With the digital currency industry moving towards regions with favorable energy rates and regulatory frameworks, the collection of detailed data aims to provide energy planners with crucial insights and contribute to discussions on enhancing transparency in energy consumption within the sector.