The US, in recent years, has emerged as a hotspot for crypto miners to set up their operations, especially after China imposed a comprehensive ban on all crypto-related activities in 2021. Given the environmental concerns and the power intensive nature of crypto mining, the US is considering imposing punitive taxes on companies and individuals involved in crypto mining in the country. The administration of President Joe Biden is now considering adding a financial remuneration to its federal coffers as crypto mining is creating job opportunities in the US and is expected to boom in the times to come.
Soon, America May Ask crypto miners To pay a tax equal to 30 percent of the total energy cost consumed in mining cryptocurrencies. This view is put forward by the US Council of Economic Advisors (CEA).
“A new proposal in this year’s budget, the Digital Asset Mining Energy (DAME) Excise Tax, seeks to address both long-standing national challenges as well as emerging risks – in this case, the economic and environmental costs of President is an example of the commitment of .current practices for mining crypto assets (crypto mining, for short). After a phase-out period, firms will be entitled to a tax equal to 30 percent of the cost of electricity used in crypto mining. Will have to face official blog said on May 2 from the White House.
In recent years, the process of mining bitcoin Mining has become more difficult with the involvement of more advanced computer systems operated by companies and independent miners.
Miners have to solve complex algorithms on advanced computers in order to mine bitcoins. companies like SAMSUNG And jack dorsey’s block To make the otherwise power-intensive process, energy efficient, specialized bitcoin mining chips are in the works.
This complex process is responsible for being harmful to the environment, as well as putting a strain on the power grids of the regions where crypto mining has picked up pace.
In November 2021 the Electric Reliability Council of Texas (ERCOT) did estimated Five-fold increase in energy load to support crypto mining and data centers.
Prior to this, many New York City businessmen had also contacted requested Governor Cathy Hochul to deny permits regarding the conversion of the city’s old fossil fuel plants into crypto mining centers.
US officials have stated that even if clean energy is used to facilitate crypto mining, it reduces the availability of clean energy for others, increasing their dependence on electricity produced by fossil fuels, as well as Makes energy more expensive.
“Currently, crypto mining firms do not have to pay the full cost imposed on others in the form of local environmental pollution, higher energy prices and the effects of rising greenhouse gas emissions on the climate. The DAME Tax encourages firms to Start taking a better accounting of the damage done to society,” the blog said.
The US estimates that it could churn out $3.5 billion (roughly Rs. 28,639 crores) through the DAME tax over the next decade.