Environmental Impact and Volatility of Cryptocurrencies

That the Parliament notes reports that environmental charities, including Greenpeace, the WWF and International Animal Rescue, have recently abandoned cryptocurrency projects over climate change concerns; understands that digital currencies, such as Bitcoin, are created when high-powered computers compete against other machines to solve complex mathematical puzzles, and that this is an energy-intensive process that often relies on fossil fuels, particularly coal; further understands that Bitcoin production is estimated to generate between 22 and 22.9 million metric tons of carbon dioxide emissions a year; notes with concern that data from the University of Cambridge and the International Energy Agency reportedly shows that, at current rates, such bitcoin mining uses about the same amount of energy annually as the Netherlands did in 2019; understands that, while mining happens all over the world, it often takes place in countries with an abundance of cheap energy, such as China; considers that using renewable energy to power cryptocurrency mining would mean less availability to power homes, factories or electric vehicles; understands that so-called stablecoins, which reportedly claim to be a relatively safe haven in the highly volatile crypto market, have recently gone into free fall; considers with concern that this has sent shockwaves through the cryptocurrency markets, reportedly wiping billions off their value and causing many people across the world to lose their life savings, and urges the Scottish Government to call on the UK Government to prioritise the toughening-up of crypto regulation.