As cryptocurrencies take hold, NZ must address the climate impacts of their colossal energy demand
Since its debut in 2009, Bitcoin and other cryptocurrencies have seen explosive growth and some dramatic downturns. Cryptocurrencies now inhabit an increasingly prominent niche in the global financial landscape, offering “pastime” opportunities for young investors, channelling donations to Ukraine’s war effort or simply providing cheaper and faster alternatives to mainstream banking.
In Aotearoa New Zealand, the Reserve Bank recently decided to investigate crypto as part of a wider conversation about how New Zealanders will pay and save in the future.
So far, crypto has benefited from light regulation in New Zealand, but it’s essential we have a clear picture of all pros and cons, including the risk of criminal behaviour and climate change impacts.
Cryptocurrencies offer a variety of investment and transaction benefits, but concerns about dangers are also growing. Crypto’s volatile track record presents significant risk to investors (alongside significant reward) and the relative anonymity of Bitcoin, Ethereum and others is proving attractive to organised crime, money laundering and tax evasion. Read more: Crypto theft is on the rise.
