New York lawmakers pass a moratorium on Bitcoin mining

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The State Senate passed a bill that will stop the issuing of new permits for fossil fuel power plants to be used in the mining of the digital currency. A study on the environmental impact of mining facilities in the state was passed by the State Assembly.

Senate Democrats had differing opinions on whether the moratorium would come with more environmental or economic costs. The State Senate was close to its deadline.

As the bill heads to Governor Kathy Hochul, it will face a second test. The New York Times reported that Hochul received a $40,000 donation from the CEO of the company that runs the former aluminum plant.

Many mining operations have set up shop in the US after China imposed restrictions on mining. New York, with abundant hydroelectricity and retired fossil fuel plants that can be restarted back up to mine, became a new hub for digital currency.

Some residents and environmental advocates don't like the resurgence of fossil fuels. They are concerned that revived fossil fuel plants will damage the environment and derail the state's efforts to address climate change.

The bill that moved forward today establishes a two-year moratorium on any new permits for cryptocurrencies mining operations that use a particularly energy-hungry approach to verify transactions on the block chain. Proof-of-work underpins two of the biggest Cryptocurrencies.

miners use special hardware to solve puzzles and earn coins A lot of energy is used. It would rank 32nd in the world in electricity use if it were its own country.

New York State committed to an 85 percent reduction in greenhouse gas emissions by 2050 in order to meet its climate goals.

The Greenidge Generating Station in New York's Finger Lakes region has become a flash point for residents worried about the impact of cryptocurrencies on the environment. Greenidge was once a coal-fired power plant, but has since been turned into a full-time mining operation.

Since it focuses on fossil fuel power plants submitting new applications for permits to use energy to mine proof-of-work based cryptocurrencies instead of sending that energy to the grid, Greenidge isn't affected by the moratorium on Bitcoins. The bill doesn't stop operations that use renewable energy or use a less energy intensive alternative to proof-of-work.