HomeCryptoBitcoinBitcoin receives official ban from New York state

Bitcoin receives official ban from New York state

The quintessential cryptocurrency has never had an easy life since its inception, and it is news these days that Bitcoin is receiving a ban with an ad hoc bill in the state of New York.

Ban for Bitcoin

The most capitalized cryptocurrency has been sailing at around $16,000 for a couple of weeks now, and as we write this, there is no exception ($16,693.50 US with a faint +0.56%). 

The range between 16,000 and 17,000 is where BTC has been “floating” since the events of the latest industry scandal, Sam Bankman-Fried‘s mega scam by FTX and Alameda Research. 

However, the financial tsunami that has depleted the value and volumes of any company and digital currency traceable to the crypto world has not undermined the foundations of Bitcoin, which paradoxically comes out stronger even if this, as we know, is not always a good thing. 

Confirmation comes from the state of New York, which despite Bitcoin’s showing that it will not go below the rock-solid $16,000 mark, demonstrating solidity, continues its war on Satoshi’s currency. 

Bitcoin is based on Proof of Work unlike, for example, Ethereum, which is based on Proof of Stake, and this does not seem to please regulators nor the state of New York pressed by the Green Party.

In an ad hoc bill, the Big Apple state Senate puts a moratorium on part of Bitcoin transactions. 

BTC mining via Proof of Work aggravates the state’s energy production with pollution that does not occur in currencies such as those based on Stake. 

The ban will be for two years and will touch any digital currency based on PoW through the use of fuels or carbon-based and thus not only Bitcoin. 

Now the ball is in the court of Kathy Hochul, governor of the US state who can block the bill only if she will veto it.

The fate of PoW-related digital currencies lies in the hands of the American Dem party governor therefore. 

The much-discussed bill reads as follows:

“Continued and expanded operation of cryptocurrency mining operations, which perform proof-of-work authentication methods to validate blockchain transactions, will dramatically increase the amount of energy consumption in New York state will impact compliance with the Climate Leadership and Community Protection Act”.

Sterling Bank vs Bitcoin

Not only institutions but also some lending institutions are lashing out against Digital Gold. 

Britain’s Sterling Bank has banned and is advising against the use of Bitcoin because of the asset’s riskiness, its high volatility, and the fact that it is often prey and tool of criminal organizations. 

The overseas lending institution for the time being has only banned investors from depositing on crypto exchanges and not withdrawing.

“This is a temporary measure we have taken to protect customers, having observed high levels of suspected financial crimes with payments to some cryptocurrency exchanges. This is not just an issue for Starling, but for all banks.”

The ban is only temporary according to the bank’s own statement through its spokesperson, however, it is not yet known when it will be lifted. 

“as we will be implementing additional controls specifically for payments to crypto exchanges.”

The curious case of Kenya 

The Big Apple is not the only country to take issue with Bitcoin at various latitudes, and in various capacities, pollution control has often caused problems for the currency, but among them is one particular case. 

Kenya is a Central African country known for its electricity production. 

The KenGen parastatal company is Africa’s and not only Kenya’s largest producer of electricity and has its own take on the crypto world

The company has unveiled its idea on BTC mining, namely harnessing surplus geothermal energy for just that purpose. 

Quartz explains that the plan intends to extend a helping hand in favor of all those players in the cryptocurrency world who need large amounts of energy for their business and thus also Bitcoin miners. 

The country generates 863 MW of energy, almost all of which is produced and guaranteed by the princely company KenGen.

However, this is just the tip of the iceberg, or the volcano sticking to the geothermal topic, since the producible energy potential has been estimated at 10,000 MW in the Rift Valley alone. 

George Michael Belardinelli
George Michael Belardinelli
A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality