US Authorities Plan To Charge 30% Of The Cost Of Mining Companies For Electricity

The administration of US President Joe Biden announced its intention to impose a 30% tax on electricity used to mine cryptocurrency. The authorities made such a proposal in the draft budget for the 2024 financial year.

Cryptocurrency mining has a “negative environmental impact,” the White House continues, and the pollution it generates is “unequally distributed among low-income neighborhoods and communities of color.” In addition, the “often erratic power consumption” of mining operations can raise the price of electricity to others and cause power outages. Moreover, local power companies are at risk if they decide to upgrade their equipment to improve the stability of their services, as miners can easily move to another location, even abroad.

Critics of the measure believe that the government wants to harm an industry that it does not support, writes Forbes. The material of the publication says that the taxation of greenhouse gases would be a better solution than the introduction of DAME. Such a decision could encourage mining companies to minimize their energy consumption and look for cleaner sources.

However, the authors of the innovation believe that cryptocurrency mining is harmful to the environment, even when clean energy is used for mining.

If the authorities pass the law on DAME, the tax will be introduced in stages, adding 10% to payments annually.