According to the International Monetary Fund (IMF), an increase in electricity taxes for crypto miners by as much as 85% could play a significant role in curbing global carbon emissions.
“Such a levy would raise annual government revenue of $5.2 billion globally and reduce annual emissions by 100 million tons around Belgium’s current emissions,” said the IMF.
Moreover, it is estimated the environmental impact of both crypto mining and artificial intelligence data centers together now account for 2% of global electricity consumption and nearly 1% of global carbon emissions.
🇳🇬REGULATION | IMF Now Recommends for Crypto Regulation in Nigeria Similar to Financial Intermediaries
“Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial… pic.twitter.com/Itdd1QIXkl
— BitKE (@BitcoinKE) May 13, 2024
But as it is, many data centers and crypto miners enjoy generous tax exemptions and incentives on income, consumption, and property, the IMF said.
“Considering the environmental damage, the lack of significant employment, and pressures on the electrical grid (possibly raising prices for households and reducing demand for the use of other low emissions goods, such as electric vehicles), the net benefits of these special tax regimes are unclear at best.”
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