Mayor of New York, Eric Adams supports restrictions on mining despite being a proponent of Cryptocurrency. He veiled his stance about the partial ban imposed in the state for crypto mining. New York governor and fellow Democrat Kathy Hochul temporarily limit the minting of digital currency using fossil fuels by signing a law supportive of the same.
Bitcoin Supporter Eric Adams to Seek Balance with Environmental Goals
The law has imposed a moratorium for two years on certain crypto-mining operations relying on carbon-based energy resources. Mayor has spoken in support of this ban stating that it will reduce the costs for the environment in the state. He is known as a vocal supporter of cryptocurrencies and hence he further clarified that he was not deterred by the recent collapse of FTX which was the worldwide largest digital asset exchange before it filed for bankruptcy. He insisted that “we must embrace the crypto and blockchain industry despite its low points.”
Adams further insisted that he still focuses on establishing New York as a hub for crypto. While all this is true he also emphasizes reducing the environmental costs and other effects of cryptocurrency extraction on the environment as it is equally important to keep it balanced, he quoted the same to New York Daily News.
He has also spoken about the proof of work mining (PoW) after the enforcement of the law signed by Governor Kathy Hochul on Tuesday. It is an energy-intensive method of validating blockchain transactions for cryptocurrencies like bitcoin. The ban on, carbon-based energy resources mining will prevent companies involved in POW mining from expanding, renewing, or obtaining new permits.
The restrictions will further affect the mining enterprises that don’t use renewable energy to source large amounts of electricity needed for their powerful computing equipment.
New York has been seen as a tough jurisdiction for starting a business working with crypto assets even before the enactment of the mining law. Despite of this the collapse of FTX and the new law have created tension in the crypto market making it difficult to survive.
A Bloomberg report unveiled that the New York governor has been postponing the signing of the law due to lobbying from the sector. In a legal filing, Kathy Hochul pledged to “ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of the environment.”
Adams has also tried to change that image, insisting that crypto is part of a broader financial frontier for the state to conquer, the report notes. “Now, there’s aspects of this bill that people didn’t agree with. I know Albany. Let’s go back. Let’s look at them,” he was quoted as stating, adding that New York City should be a leader in this and other new technologies.
Both the Mayor and the Governor are making ardent efforts in ensuring people that the new law could spur crypto development as well as the use of green power like hydroelectric energy simultaneously and keep the balance between economic development and environmental preservation.
