Bank of Canada CBDC Will Be More Eco-friendly Than Bitcoin

Timothy LANE, Deputy Governor of the Bank of Canada, said their initiative to create a cryptocurrency would be much more sustainable than bitcoin. The Bank of Canada digital currency will not use the PoW consensus method used by bitcoin and ethereum.

In recent weeks, controversy has flared up about energy-intensive bitcoin mining. As a reminder, Elon MUSK, CEO of Tesla and SpaceX, said that Tesla will no longer accept bitcoin payments for their cars. There is currently an effort to use renewable energy sources for cryptocurrency mining. However, Lane said these efforts would not change the reality that bitcoin consumes an excessive amount of energy that can be used for more "useful purposes."

Lane also stressed that currently, Canada's central bank sees no need to launch its digital currency. This could change if cryptocurrencies become widespread and begin to replace fiat money used by banks. A recent study found that the coronavirus outbreak has spurred the use of digital currencies around the world.

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