The International Monetary Fund (IMF) reports that crypto mining and data centres together account for 2% of global electricity. This figure is expected to rise to 3.5% within the next three years, raising concerns about the environmental impact of these energy-intensive industries.

Increasing the electricity tax by 85% could in turn force the industry to become more environmentally responsible, proposes the IMF.

Cryptocurrency mining being particularly energy-hungry, policymakers are starting to consider strategies to limit carbon footprint. One strategy is the potential use of targeted taxation to steer the industry toward reducing emissions. The IMF proposes taxing miners will incentivise them to reduce their electricity consumption.