{"id":459434,"date":"2022-06-08T12:21:14","date_gmt":"2022-06-08T09:21:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/imf-recommends-eco-friendly-cbdcs-and-non-pow-mechanisms-for-payments\/"},"modified":"2022-06-08T12:21:14","modified_gmt":"2022-06-08T09:21:14","slug":"imf-recommends-eco-friendly-cbdcs-and-non-pow-mechanisms-for-payments","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/imf-recommends-eco-friendly-cbdcs-and-non-pow-mechanisms-for-payments\/","title":{"rendered":"# IMF recommends eco-friendly CBDCs and non-PoW mechanisms for payments"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a35007685014\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a35007685014\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/imf-recommends-eco-friendly-cbdcs-and-non-pow-mechanisms-for-payments\/#%E2%80%9D_IMF_recommends_eco-friendly_CBDCs_and_non-PoW_mechanisms_for_payments_%E2%80%9C\" >&#8221; IMF recommends eco-friendly CBDCs and non-PoW mechanisms for payments &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_IMF_recommends_eco-friendly_CBDCs_and_non-PoW_mechanisms_for_payments_%E2%80%9C\"><\/span>&#8221; IMF recommends eco-friendly CBDCs and non-PoW mechanisms for payments &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>An International Monetary Fund (IMF) study on energy consumption revealed the importance of design choices within the crypto ecosystem to build an environmentally friendly mainstream payment system.<\/p>\n<p>In the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.imf.org\/en\/Publications\/fintech-notes\/Issues\/2022\/06\/07\/Digital-Currencies-and-Energy-Consumption-517866\">study<\/a>\u00a0entitled \u201cDigital Currencies and Energy Consumption,\u201d the IMF examined the\u00a0energy consumption\u00a0of crypto assets based on their distinct design elements to evaluate the ideal mechanism for developing\u00a0central bank digital currencies\u00a0(CBDCs). <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-06\/9b2717a5-1572-4954-816b-7895cda389a0.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Estimates of energy use (in kWh) per transaction for the core processing of different payment systems. Source: IMF<\/em><\/figcaption><\/figure>\n<p>Sharing the groundwork for policy discussions around the environmental impacts of digital currencies, the IMF recommended moving away from\u00a0proof-of-work\u00a0(PoW)-based distributed ledger (DLT) <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications, adding:<\/p>\n<blockquote><p>\u201cIn particular, Bitcoin (BTC), the best-known application of this type, is estimated to consume much energy (about 144 terawatt-hours (TWh)) per year. Although scalability solutions reduce the energy cost per transaction, they do not reduce the overall energy spending.\u201d<\/p><\/blockquote>\n<p>However, the international organization acknowledged the high energy efficiency brought about by non-PoW, permissioned crypto assets when compared to the traditional financial system:<\/p>\n<blockquote><p>\u201cThe potential of non-PoW permissioned crypto assets to reduce energy consumption relative to the existing payment system comes about from energy savings on both core processing architectures and user payment means.\u201d<\/p><\/blockquote>\n<p>Drawing a conclusion from the study, the IMF\u2019s recommendation to the central banks is to \u201cdesign CBDCs with the explicit goal to be environmentally friendly.\u201d This means selecting platforms, hardware and design options with \u201ca lower carbon footprint than the central banks\u2019 legacy systems\u201d right from the experimentation phase.<\/p>\n<p>In addition to eco-friendly components, central banks were recommended to include other features in the CBDCs, such as compliance, higher resilience and offline capabilities.<\/p>\n<p>The IMF also pointed out that the policymakers will consider the mainstreaming of crypto or CBDCs by weighing the environmental impact of the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a>\u2019s underlying design. In the study, IMF estimated that the annual energy consumption by the global payment system stands at 47.3 TWh \u2014 roughly matching the yearly consumption of economies like Portugal and Bangladesh. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Iota Foundation joins Dell to develop real-time carbon footprint tracking<\/em><\/strong><\/p>\n<p>Joining in the cause to address climate change, the Iota Foundation, a nonprofit DLT ecosystem provider, partnered with Dell Technologies to develop a real-time carbon footprint tracking system.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We&#8217;ve partnered w\/ <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/iota?ref_src=twsrc%5Etfw\">@Iota<\/a>, BioE, &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/ClimateCHECK?ref_src=twsrc%5Etfw\">@ClimateCHECK<\/a> to develop real-time carbon footprint tracking through a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/data?src=hash&amp;ref_src=twsrc%5Etfw\">#data<\/a> confidence fabric! <\/p>\n<p>Hear how <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/ProjectAlvarium?src=hash&amp;ref_src=twsrc%5Etfw\">#ProjectAlvarium<\/a> accurately tracks carbon footprints w\/ <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/DellTech?src=hash&amp;ref_src=twsrc%5Etfw\">#DellTech<\/a> Edge solutions.<\/p>\n<p> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/u5CxmbMBAL\">https:\/\/t.co\/u5CxmbMBAL<\/a><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/intel?ref_src=twsrc%5Etfw\">@Intel<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/IOTA?src=hash&amp;ref_src=twsrc%5Etfw\">#IOTA<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Sustainability?src=hash&amp;ref_src=twsrc%5Etfw\">#Sustainability<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/52RENnEW3X\">pic.twitter.com\/52RENnEW3X<\/a><\/p>\n<p>\u2014 Dell Edge &amp; Telecom (@Dell_Edge) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Dell_Edge\/status\/1533949500393508864?ref_src=twsrc%5Etfw\">June 6, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The initiative will bring about near-real-time tracking of carbon emissions from BioE\u2019s sustainable energy and composting facility. Mathew Yarger, head of sustainability at the Iota Foundation, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.dell.com\/en-us\/dt\/video-collateral\/project-alvarium-tracks-carbon-footprint-with-edge-solutions.htm\">stated<\/a>:<\/p>\n<blockquote><p>\u201cWe\u2019re now able to track and verify data around climate change and how we\u2019re actively trying to address it at a level that\u2019s never been achieved before.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/imf-recommends-eco-friendly-cbdcs-and-non-pow-mechanisms-for-payments\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; IMF recommends eco-friendly CBDCs and non-PoW mechanisms for payments &#8220; An International Monetary Fund (IMF) study on energy consumption revealed the importance of design choices within the crypto ecosystem to build an environmentally friendly mainstream payment system. In the study\u00a0entitled \u201cDigital Currencies and Energy Consumption,\u201d the IMF examined the\u00a0energy consumption\u00a0of crypto assets based on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":459435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvOWFiMTNkMzctZmYzZS00NThiLWIwNDUtMjRkOTljOGRlNGVlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,75159,75554,75606,77189,75578,74355,10595],"class_list":["post-459434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-digital-currency","tag-dlt","tag-imf","tag-policies","tag-proof-of-work","tag-adoption","tag-environment"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=459434"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459434\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/459435"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=459434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=459434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=459434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}