Bank of Canada says its CBDC would be greener than Bitcoin

The Bank of Canada’s planned national digital currency (CBDC) will not rely on “wasteful mining methods” inherent to cryptocurrencies. Deputy Governor Tim Lane said this, according to Penticton Western News.

The official noted that the launch of the digital Canadian dollar is not expected in the near term.

According to Lane, in the CBDC Canadians, as before, will trust the country’s central bank, and not Proof-of-Work, on which Bitcoin and Ethereum operate.

A regulator’s representative rejected the view that, going forward, Bitcoin mining would rely more on renewable energy sources.

You can replace “dirty” energy with “clean” energy. But if you use that extra gigawatt for mining Bitcoin, that’s one gigawatt less than could be directed toward some “useful purpose”, Lane explained.

Earlier, experts named the first cryptocurrency more environmentally friendly than the petrodollar.

Earlier, Galaxy Digital analysts estimated that annual electricity costs for Bitcoin miners are lower than those used in gold production and in the banking sector.

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