EVASION OF CARBON FOOTPRINTS IN CRYPTOCURRENCIES AND ITS PROSPECT AROUND THE GLOBE

Abstract

The main aim of this study is to determine the evasion of carbon emission in use of cryptocurrency across the world. Stopping global warming caused by humans is crucial if we want to assure a sustainable future. While nations all over the world are actively working toward the sustainability goals, CO2 levels are gradually growing. The annualized energy usage of some crypto assets, like bitcoin, is projected to be comparable to that of some mid-sized countries, leaving a considerable carbon footprint. Their underlying blockchain technology, which necessitates enormous quantities of processing power, is the primary cause of this disproportionate carbon impact. Not just this but Financial system climate transition risk is rising as a result of growing financial exposure to crypto-assets with large carbon footprints. These digital assets' value is particularly susceptible to local governments' climate policies and the effects of the move to net zero. Due to the current surge in energy prices during the Russia-Ukraine war, jurisdictions may also focus more intently on the effective use of various energy sources. It appears unclear that bitcoin investors have currently factored in the harmful ecological externalities and any policy changes from the government.