The American cryptocurrency exchange Gemini has bought carbon credits to decarbonize Bitcoin amid growing outrage that the cryptocurrency is not environmentally friendly.
Through its newly formed Gemini Green, a long-term initiative to incorporate climate-conscious practices into its business, the trading platform has partnered with Climate Vault, a nonprofit of the University of Chicago.
The exchange bought carbon certificates for nearly 350,000 tons of carbon to offset the carbon emissions of the Bitcoin network. The carbon credits will help offset the non-renewable energy used by miners on the bitcoin network to secure the bitcoins that Gemini is holding.
“As Bitcoin becomes a dominant store of value, it is imperative that we incorporate sustainability for future generations. We are proud to partner with Climate Vault to offset our commitment to non-renewable mining and to help decarbonize Bitcoin, “said Tyler Winklevoss, CEO of Gemini.
Concerns about Bitcoin’s energy use have sparked many polarizing debates in recent weeks, culminating in a regulatory crackdown in China. The Asian giant has issued a haunting notice, forcing miners to cease operations in the country, resulting in a massive exodus of all miners in search of a safe haven elsewhere. While the established miners are moving to Kazakhstan or the USA, more and more small-scale miners are offering their mining machines for sale.
According to Gemini’s announcement, the exchange has raised $ 1 million through the Gemini Opportunity Fund to support businesses, projects, and nonprofits focused on sustainability in the crypto industry. Through a number of approaches coordinated by Climate Vault, the funds will be used to fund companies developing novel technologies that can help remove CO2 from the atmosphere.
Trying to eliminate bitcoin-related energy use and emissions results in a fee for introducing sustainable energy to the mining operation.
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