Finance
Proposal to Tax Cryptocurrency Mining for Climate Action
Recently, at a United Nations climate conference in Baku, Azerbaijan, a proposal to combat climate change by levying crypto taxes on cryptocurrency mining has amassed significant attention.
As per the proposal, if a levy of $0.045/kilowatt-hour (kWh) is imposed for crypto mining for electricity usage, it could generate $5.2 billion a year, according to a Global Solidarity Levies Task Force report led by Barbados, Kenya, and France.
This guide will examine the proposal’s key highlights, global context and precedents, and implications for the crypto industry. Let’s begin.
The Proposal: Key Highlights
Objective
- Incentivize cleaner mining practices.
- Fund transitions to renewable energy in less affluent nations.
- Mitigate the environmental impact of mining activities.
Rationale
- The Bitcoin network uses a lot of electricity—more electricity than some small countries—which results in substantial greenhouse gas emissions.
- According to research by the International Monetary Fund (IMF), a tax of $0.045/kWh could help address negative impacts on the climate. The institute also suggested that increasing it to $0.085/kWh can help cope with air pollution from fossil fuels.
Potential Impact
- This decision could drive miners to use hardware that consumes less electricity or adopt renewable energy sources.
- This could also lead the Bitcoin network to transition into a more energy-efficient transaction verification method, like Ethereum, which transitioned into the Proof-of-Stake (PoS) consensus mechanism.
Global Context and Precedents
Current Examples
- In 2022, Kazakhstan imposed a crypto mining tax, which collected $7 million in just a year.
- Under the Biden administration, the U.S. proposed a 30m percent tax on crypto miners’ power consumption. However, this support is doubtful under the forthcoming Trump administration.
Challenges
- Implementing such a huge task of imposing global taxes requires a bulletproof mechanism.
- How the funds would be collected and distributed would be an even bigger task.
Future Steps
- A task force will present a detailed proposal at Work Bank and IMF meetings in April 2025. Broader implementation discussions will take place in November 2025 at the UN Climate Summit.
Broader Scope
Initially, the task force only focused on aviation, fossil fuel companies, and maritime shipping; however, it has now also included billionaires, crypto mining and plastic production companies. Its Coalition for Solidarity Levies now includes 17 countries and organizations like the African Union and the European Commission.
The European Climate Foundation CEO Laurence Tubiana believes environmental justice cannot exist without financial equity. Those with the most resources and the largest environmental impact must contribute proportionally. Similarly, IMF Research Insight says that a single Bitcoin transaction can consume as much electricity as a Ghanaian household uses in three years or a German household in three months.
Implications for the Cryptocurrency Industry
The increased regulatory costs may lead to a substantial shift in crypto-mining practices. However, increasing Bitcoin value and favorable expectations under Trump’s presidency could lead to further mining.
This proposal is an important intersection of the cryptocurrency industry’s growth and environmental responsibility. However, its success depends on navigating complex geopolitical and economic challenges and on international cooperation.
FAQs
1. What is cryptocurrency mining?
Cryptocurrency mining is how new coins are created, and transactions are verified on a blockchain. Miners use powerful computers to solve complex puzzles, which helps keep the network secure and decentralized. In return, they earn cryptocurrency as a reward for their efforts.
2. Is crypto mining illegal?
Cryptocurrency mining is legal in many places as long as miners follow the rules, like paying electricity and taxes. However, some countries, like China and Algeria, have banned it because of concerns over its environmental impact or illegal activities. It’s important to check the rules in your area before getting started.
The above article is sponsored content any opinions expressed in this article are those of the author and not necessarily reflect the views of VORNews. For more information on our sponsored content policy Click Here
Finance
TD Stock Sinks as Bank CEO Suspends Guidance
TD stock sank on Thursday as a result of investors’ disappointment with the lender’s decision to suspend guidance while it conducts a strategic review in response to its anti-money laundering settlement in the United States.
TD’s quarterly profit estimates were below expectations; however, this was almost a mere footnote in the pursuit of a narrative, as analysts were unable to identify TD’s objectives.
TD stock closed at $74.02 on Thursday, a 7.08 percent decline.
The strategic review, which will be conducted by the prospective CEO, Raymond Chun, is designed to be a comprehensive assessment of the bank’s operations and opportunities in the aftermath of the substantial penalties imposed by U.S. regulators for TD’s anti-money laundering inadequacies.
In October, the lender made history by becoming the largest bank in the United States to plead guilty to violating a federal law designed to prevent money laundering. As a result, the lender agreed to pay $3 billion in penalties.
Regulators in the United States have implemented a rare asset limit that has affected TD. The bank will dispose of up to $50 billion in low-yielding bonds and reinvest the proceeds, in addition to reducing its assets in the country by 10%.
The bank’s U.S. retail business reported an adjusted net income of C$1.10 billion ($782.70 million) in the quarter, a decrease of C$174 million from the previous year.
Analysts anticipate that TD stock may pursue strategies to enhance its competitiveness in the domestic market subsequent to the implementation of the U.S. asset limitation.
In the three months ending on October 31, the bank’s adjusted net income decreased from C$3.49 billion, or C$1.82 per share, a year earlier, to C$3.21 billion ($2.28 billion), or C$1.72 per share.
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Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas’ articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.
Finance
Canadian Dollar Drops After Trudeau Passes GST Holiday
The Canadian Dollar (CAD) dropped against the Greenback on Monday after the Liberals passed their controversial GST holiday, which added $6.3 billion to Canada’s National Debt.
The Canadian dollar has slipped to its lowest level in five years. Outside of the depths of the COVID pandemic, the loonie is weaker than it’s been since 2015. After trading from 1.3987 to 1.4089, the loonie traded 0.3% lower at C$1.4044 to the greenback, or 71.2 U.S. cents.
The 10-year bond yields of the Canadian government decreased by 1.4 basis points to 3.072%. On comparable benchmark debt issued by the United States government, the yield remained constant at 4.1936%.
The Canadian dollar has been consistently declining over the past few months, a decline many economists and currency experts have attributed to the country’s increasing inflation and Trudeau’s uncapped spending.
“I would not be surprised if we were to fall below 70 cents [US] and potentially as low as 68 cents at some point,” stated Karl Schamotta, the chief market strategist of Corpay, a financial payments company.
Canadian Dollar Decline
Since the summer of 2021, the Canadian dollar has been in a protracted, gradual decline. Nevertheless, the U.S. dollar has experienced a significant increase in value this month due to Donald Trump’s re-election victory.
The American dollar gained ground on the currency of nearly every industrialized country globally as he has pledged to implement tax cuts, deregulation, and comprehensive tariffs on all U.S. imports.
Canada exports approximately 75% of its goods to the United States, which has not precisely bolstered the Canadian dollar.
When the loonie falls, the Canadian economy suffers far-reaching consequences. Imports become more costly, but exporters who receive payment in U.S. dollars generate more revenue.
According to Douglas Porter, the chief economist at the Bank of Montreal, Canadians were already experiencing the effects of elevated financing costs and escalating prices for nearly all goods and services. He asserts that the cost of nearly all imports from the United States is increasing.
“It almost invariably results in increased petrol prices.” “It can directly affect food prices, as a significant portion of the food we consume is either imported or must compete on a global scale,” stated Porter.
Trudeau’s Spending
The domestic sector in Canada is experiencing an increase in borrowing costs, negatively impacting its leverage. Under Trudeau’s leadership, we are experiencing low productivity, feeble business investment, and soft commodity prices.
“People tend to see the currency value as a sort of national virility symbol,” according to him. Therefore, they will experience enthusiasm when the currency is at its highest and disappointment at its lowest.
Porter also contends that the Canadian dollar’s depreciation adversely affects the overall health of the Canadian economy.
He attributes the responsibility for this to Trudeau, who, according to him, overspent, printed an excessive amount of money, and consequently undermined the Canadian economy.
“The really sad thing is, for me and you and the rest of Canadian citizens, our standard of living has dropped 35 to 40 per cent versus the United States in the last eight years,” he pointed out.
That is merely a minor example of a low dollar’s influence on the perceptions of the economy and the politicians that many Canadians attribute to its difficulties.
Geoff Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas’ articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.
Finance
Forex Trading Gains Popularity in Thailand
Forex Trading, the buying and selling of currencies has long been considered a game played by a handful of countries with strong financial stability and stronger currencies, such as the United Kingdom, the United States, the UAE, and even Singapore. However, recent reports have painted a very different picture: most forex search acts use the world’s smaller economies.
While this doesn’t mean that they are engaging in forex trading, it does mean that the interest is there and with a little fostering and some education, the forex economy would bloom. Such is the case with Thailand.
Attempting to gain financial independence through forex
As a country with cheap labor and few job opportunities, forex trading is gaining widespread attention as natives gain more insights into the world of forex via social media and the Internet. There are countless TikTok videos on how to become financially independent through trading, specifically forex trading, and these unconventional—but previously inaccessible—ways of making money are generating lots of interest, especially with the younger generation.
The Internet creates accessibility for Thai nationals interested in forex.
Without the rise of smartphones and data plans, forex might not have reached such levels of interest in Thailand. Aside from how information regarding trading opportunities is peddled through social media, the Internet has also created a platform for accessible trading. Thai nationals are able to source international brokers and global platforms instead of relying on national institutions that do not offer support for forex trading.
Thatn’t I forex supported in Thailand?
National institutions don’t support Forex trading in Thailand that don’t support Forex trading in Thailand. There are currency restrictions. In 1977, during the Tom Yum Kung crisis, the country’s mismanagement of the Thai baht caused a withdrawal of foreign investments due to trade deficits.
However, hope is not all lost. As mentioned above, social media is a means for local residents to learn more about their options and finding a reputable โบรกเกอร์ forex broker is by no means impossible. In fact, as long as users steer clear of pyramid schemes, they are eligible to register an account with a foreign currency broker outside of the country, and it is all very legal.
The Future of Forex Trading in Thailand
Recent reports reveal that the Thai government has plans to relax laws on forex trading. According to Chananun Supadulya, the BoT’s Foreign Exchange Administration and Policy Department director, the annual outflow limit will be raised from US$50,000 to US$200,000. This shows promise that Thailand will benefit further from forex, and the economy will boom with the right regulations in place.
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The above article is sponsored content any opinions expressed in this article are those of the author and not necessarily reflect the views of VORNews. For more information on our sponsored content policy Click Here
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