Bitcoin Receives Official Ban From New York State
The quintessential cryptocurrency has never had a simple life since its inception, and it’s news these days that Bitcoin is receiving a ban with an ad hoc bill in the state of New York.
Ban on Bitcoin
The most capitalized cryptocurrency has been sailing around $16,000 for a couple of weeks now, and as we write this, it is no exception ($16,693.50 US with a slight +0.56%).
The area between 16,000 and 17,000 is where BTC has “moved” since the events of the last industry scandal, Sam Bankman-Friedis mega scam by FTX and Alameda Research.
However, the financial tsunami that has drained the value and volumes of every company and digital currency traceable to the crypto world has not undermined the foundations of Bitcoinwhich paradoxically comes out stronger even though this, as we know, is not always a good thing.
The confirmation comes from the state of New York, which, despite Bitcoin showing that it will not go below the rock-solid $16,000 mark, shows solidity, continues its war against Satoshi’s currency.
Bitcoin is based on Proof of Work unlike, for example, Ethereum, which is based on Proof of Stake, and this does not seem to please regulators or the state of New York pushed by the Green Party.
In an ad hoc bill, the Big Apple state’s Senate puts a moratorium on parts of Bitcoin transactions.
BTC mining via Proof of Work worsens the state’s energy production with pollution that does not occur in currencies such as those based on Stake.
The ban will be for two years and will affect any digital currency based on PoW through the use of fuel or carbon based and thus not just Bitcoin.
Now the ball is in the court Kathy Hochulgovernor of the US state who can block the bill only if she wants to veto it.
The fate of PoW-related digital currencies therefore rests in the hands of the US Dem party governor.
The much-discussed bill reads as follows:
“Continued and expanded operation of cryptocurrency mining, which performs proof-of-work authentication methods to validate blockchain transactions, will dramatically increase the amount of energy consumption in New York State that will affect compliance with the Climate Leadership and Community Protection Act”.
Sterling Bank vs Bitcoin
Not only institutions, but also some lending institutions attack Digital Gold.
The UK’s Sterling Bank has banned and advises against the use of Bitcoin due to the asset’s risk, its high volatility and the fact that it is often prey and a tool for criminal organisations.
The foreign lending institution has so far only prohibited investors from depositing money on crypto exchanges and not withdrawing.
“This is a temporary measure we have taken to protect customers, after observing high levels of suspected financial crime with payments to some cryptocurrency exchanges. This is not just a problem for Starling, but for all banks.”
The ban is only temporary according to the bank’s own statement through its spokesperson, but it is not yet known when it will be lifted.
“as we will implement additional controls specifically for payments to crypto exchanges.”
The curious case of Kenya
The Big Apple is not the only country that has problems with Bitcoin at various latitudes, and in various capacities pollution control has often created problems for the currency, but among them there is one special case.
Kenya is a Central African country known for its electricity production.
The parastatal company KenGen is Africa’s and not only Kenya’s largest producer of electricity and has its own view on the crypto world.
The company has unveiled its idea at BTC miningnamely to utilize excess geothermal energy for precisely that purpose.
Quartz explains that the plan intends to extend a helping hand in favor of all those players in the cryptocurrency world who need large amounts of energy for their business and thus also Bitcoin miners.
The country generates 863 MW of energy, almost all of which is produced and guaranteed by the leading company KenGen.
However, this is only the tip of the iceberg, or the volcano that sticks to the geothermal theme, as the producible energy potential is estimated at 10,000 MW in the Rift Valley alone.
