Gemini Unveils Plan To Offset Bitcoin’s Carbon Footprint
Top US Crypto exchange Gemini is looking to address Bitcoin's energy concerns through its latest initiative.
Gemini Launches Gemini Green
To offset Bitcoin’s carbon emissions, Gemini announced a long-term initiative called Gemini Green.
Through this initiative, the Bitcoin exchange plans to purchase carbon permits for nearly 350,000 metric tons of carbon. This would mark a crucial step in its plan to offset its usage of the Bitcoin Network and help decarbonize the asset.
Per the release, Gemini would collaborate with Climate Vault, a non-profit organization founded at the University of Chicago to purchase the permits.
Climate Vault is in charge of purchasing permits for the firm from government-regulated cap-and-trade markets. The non-profit would also remove them from circulation.
The exchange, founded by the Winklevoss Twins, has also allocated $1 million to support projects, companies, and nonprofits organizations focused on sustainability in the crypto industry. Speaking on the development, Tyler Winklevoss, CEO of Gemini expressed his excitement by saying,
“As bitcoin emerges as a dominant store of value, it's imperative that we incorporate sustainability for future generations. We are proud to team up with Climate Vault to offset our exposure to non-renewable mining and contribute to the decarbonizing of bitcoin.”
Founded in 2014, Gemini is a trading platform that enables customers to buy, sell, store, and earn cryptocurrencies like Bitcoin, Ether, and DeFi tokens. The firm which owns the popular NFT marketplace, Nifty Gateway recently acquired cryptocurrency custody specialist Shard X.
Firms Go Green Amid Bitcoin’s Environmental Issues
Compared to other cryptocurrencies, Bitcoin has a large carbon footprint. This is due to the proof of work (PoW) consensus.
Under this protocol, miners solve complex mathematical puzzles to verify transactions using energy-guzzling machines.
Although the carbon cost of Bitcoin mining has long been known, the issue became pronounced after Elon Musk's Tesla backtracked on plans to accept the asset as payment for its EVs.
Ever since then, Bitcoin has received more public scrutiny. This has also led to the creation of a Bitcoin mining council, a group that aims to counter the misinformation about Bitcoin and find solutions.
Recently, offsetting has become popular among crypto firms seeking to reduce their carbon footprints.
Last month Crypto exchange BitMex also announced the decision to go carbon neutral, noting that it will release further details about its plan in due course.