American cryptocurrency exchange Gemini has purchased carbon credits to help decarbonize Bitcoin amidst a growing clamour that the cryptocurrency is not environmentally friendly.
Through its newly formed Gemini Green, a long-term initiative to incorporate climate-conscious practices into its business, the trading platform has partnered with Climate Vault, a non-profit associated with the University of Chicago.
The exchange has purchased carbon permits for nearly 350,000 metric tons of carbon to help offset the carbon emissions by the Bitcoin Network. The carbon credits will help offset the non-renewable energy consumed by miners on the Bitcoin Network to secure the bitcoin that Gemini custody.
“As bitcoin emerges as a dominant store of value, it’s imperative that we incorporate sustainability for future generations. We are proud to team up with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonizing of bitcoin,” said Tyler Winklevoss, CEO of Gemini.
The energy utilization concerns of Bitcoin have sparked a lot of polarizing debate in the past weeks, culminating in a regulatory clampdown in China. The Asian giant has issued a powerful notice, forcing miners to halt their operation in the country, resulting in a massive exodus of all levels of miners seeking a safe haven elsewhere. While the established miners are moving to Kazakhstan or the US, a growing number of retail miners are putting up their mining machines for sale.
According to the announcement from Gemini, the exchange has allocated $1 million through the Gemini Opportunity Fund to support companies, projects, and nonprofits that are focused on sustainability in the crypto industry. Through a series of approaches coordinated by Climate Vault, the funds will be deployed to fund companies developing novel technologies that can help remove CO2 from the atmosphere.
The attempt to eliminate the energy utilization and emissions associated with Bitcoin leads to a charge for adopting sustainable energy in mining operations across the board.
Image source: Shutterstock