The future of Bitcoin in Europe is an exciting subject to discuss, as the European Union has been quite open and embracing when it comes to this revolutionary digital currency until, suddenly, it wasn’t anymore.
As a matter of fact, some European Parliamentarians tried to ban Bitcoin mining due to its alleged high carbon footprint and the energy consumption required to mine these cryptos. But like with all politics, the topic will be debated and re-debated, most likely for years to come.
So why the environmentally-friendly agenda all of a sudden? It’s more plausible that politicians have a stake in backroom politics for the competition rather than being worried about climate change in their private jets or yachts. So what does the future hold for Bitcoin in Europe? Let’s find out.
Analyzing the role of banks and other financial institutions in shaping the future of Bitcoin in Europe
It’s no secret that the ECB (European Central Bank) doesn’t really prefer Bitcoin, to say the least. The bank keeps issuing warnings about the cryptocurrency’s increasing carbon footprint as a red flag for concern.
They also continue to bash Bitcoin claiming that the crypto is becoming irrelevant even though its popularity in the market has been growing ever since it was launched back in 2009.
This ultimately drives away potential investors and buyers as environmental responsibility has already been attached to consumers and not mega-corporations that are responsible for climate change, in the first place.
Understanding cryptocurrency regulations across different European countries
Although European countries are allowed to regulate cryptos within their own policies, as part of the Union, they are also required to comply, at least to some degree, with policies issued by the Parliament. As a result, by 2025, a carbon rating system will be introduced in Europe.
In other words, even Bitcoin will get its very own energy efficiency label like most TVs and other appliances already have. You can imagine what that will look like with all the heat crypto is under in the EU today. That said, every country in the EU will have to disclose this energy label regardless of how they regulate Bitcoin or other cryptos with their own policies.
How the EU’s regulatory environment is impacting Bitcoin
As mentioned before, back in April 2022, an attempt was made to ban Bitcoin trading and mining all at once by some European Parliamentarians. The ban ultimately failed and as a compromise and a rating system was introduced. However, that doesn’t mean that the issue is over, far from it. The ongoing campaign against Bitcoin is still going strong and it might eventually result in a ban being passed for mining and trading in the future.
The future of Bitcoin in Europe is uncertain, to say the least. How the eco frenzy campaign will affect this cryptocurrency remains to be seen.