Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Cryptocurrencies "Threat" to Global Energy, Environment, Says Mohieldin


Fri 14 May 2021 | 01:56 AM
Taarek Refaat

Mahmoud Mohieldin, Executive Director of the International Monetary Fund (IMF) said that governments and regulatory authorities should not leave the so-called cryptocurrencies to consume huge energy, harming the environment in its mining operations.

Mohieldin added that Bitcoin mining operations consume more energy than many countries in the size of the Netherlands, Argentina, Sweden and Malaysia.

He pointed out: "In addition to the effect of the digital currencies on the prices of computers and their sophisticated RAM hardware for mining, speculation reached a limit of gambling that puts a personal responsibility of those who are aware of the rules of calculating risks."

He stressed, "The negative impact on energy and the environment goes beyond personal limits, which calls for the intervention of governments and regulatory authorities, including those concerned with the environment and climate change."

The executive director explained that this anticipated intervention will have repercussions and necessitate following up the demand and supply factors for these cryptocurrency financial assets, which will witness more sharp fluctuations in their prices.

He concluded that several countries are expected to issue their own digital currencies.