Turkish central bank criticises Bitcoin for its environmental impact

The Central Bank of the Republic of Turkey presented to Parliament a report detailing its views on cryptocurrencies. This was reported by BloombergHT.

In the document, which came into journalists’ hands, the risks inherent in digital assets are enumerated. In particular, the central bank drew attention to environmental issues.

«Mining of cryptocurrencies consumes a lot of energy, contributing to global warming», the regulator said.

The Turkish central bank for the first time criticised Bitcoin for its negative impact on the environment. According to данным from Cambridge Judge Business School, the country accounts for 0.03% of the Bitcoin network’s total hashrate.

For comparison: neighboring Iran, which, according to media reports, will impose penalties on miners for using household electricity, accounts for 3.82% of the hashrate.

Among other risks the regulator cited are the lack of mechanisms for oversight and supervision of cryptocurrencies, market volatility, the anonymity of some assets, threats of hacking, and the irreversible nature of transactions.

In April, the central bank of Turkey banned payments in cryptocurrencies. The restrictions do not apply to Bitcoin exchanges.

In May, Turkey required platforms trading digital assets to comply with the requirements to combat money laundering and financing of terrorism.

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