Experts debate Bitcoin climate footprint in latest Cointelegraph Crypto Duel

April 30, 2021 Coin Telegraph

In the latest Cointelegraph video debate, experts discuss pathways towards making Bitcoin more sustainable.

In the latest Cointelegraph Crypto Duel, founder of Digiconomist Alex de Vries and CEO and founder of Blockchain for Climate Joseph Pallant debated the intensity of Bitcoin’s footprint and possible paths forward to reduce it.

As pointed out by de Vries, Bitcoin’s energy consumption has been increasing together with its network. The analyst predicts its carbon footprint could increase tremendously as Bitcoin gets closer to mass adoption.

“I fear that this will quickly get completely out of control if adoption increases a lot more”, he said.

According to de Vries, as long as Bitcoin functions with a proof-of-work system, bringing down emissions will be difficult. De Vries doesn’t see the incentive for miners to embrace renewables, given the intermittency of this type of energy sources.

“There's no incentive for miners to just enrol themselves into a scheme where they can only get power for an hour of day”, he pointed out.

Thus, according to the analyst, Bitcoin miners will continue relying on fossil fuels in the forseeable future.

Pallant disagrees. He believes that cheap renewables will be playing an important role in reducing the environmental footprint of Bitcoin.

"We do know that in a lot of places solar and wind power is the lowest cost", he said.

Pallant also believes that blockchain tech could be used to establish a record of those Bitcoins that are mined with renewables, thus stimulating demand for those "green coins" among institutional investors.

"We can get to net-zero emissions of these blockchains through reducing emissions where we can and offsetting the rest", Pallant pointed out.

To check out the full debate, watch it on our YouTube channel and don’t forget to subscribe!

Asia-Pacific’s solarized digitalization agenda in pandemic times

April 24, 2021 Coin Telegraph

CBDC

Amid the COVID-19 pandemic, the role of digitalization has become central to achieving sustainability and lessening climate change.

The virtual 7th Asia-Pacific Climate Change Adaptation Forum was jointly hosted by the Ministry of the Environment of Japan and the Asia Pacific Adaptation Network with the theme “Enabling Resilience for All: The Critical Decade to Scale-up Action.” The forum took place in March and was held to formulate national adaptation planning for science and technology, and energy and fiscal policies that consider the interlinkages between climate change, health and biodiversity.

These nature- and ecosystem-based policies will serve as the basis for the Asia-Pacific region’s contributions to the Leaders Summit on Climate in the United States; the United Nations Biodiversity Conference (COP 15) in Kunming, China; and the United Nations Climate Change Conference (COP 26) in Glasgow, Scotland.

The Asia-Pacific region accounts for 60% of the global population (around 4.3 billion people). It has the world’s fastest-rising economies, which are supported by innovations in technology and cryptocurrency that are energy-intensive. This results in the highest growth in electricity generation, fueled predominantly (85%) by fossil fuels.

Three out of the six largest carbon dioxide-emitting countries in the world — China, India and Japan — are in the Asia-Pacific region, an area that produces about half of the world’s carbon dioxide emissions. As a result, the region is also increasingly impacted by extreme weather events.

With 2020 witnessing the COVID-19 pandemic and being the warmest year on record, there is an urgent need to decouple economic growth from greenhouse gas emissions in order to transition the Asia-Pacific region toward carbon neutrality. A few countries in the Asia-Pacific region — including Japan, South Korea, Bhutan, Fiji, the Maldives, the Marshall Islands and Nepal — have declared their aim to be carbon neutral by 2050; and China has set its target as 2060. These commitments are incorporated in their nationally determined contributions.

A newly released International Monetary Fund departmental paper makes fiscal policy recommendations for the region focused in three areas:

Increase in the use of carbon taxes
Increase in the ability to adapt to climate change;
Increase pandemic spending for greener activities.

These recommendations are aimed at addressing climate change in the Asia-Pacific region.

Turning digital technology innovation into climate action in the Asia-Pacific region

With the COVID-19 pandemic, industrial digitalization has entered a new phase of explosive development.

Houlin Zhao, secretary-general of the International Telecommunication Union — which organizes events and publishes reports to raise awareness around the role of frontier technologies with regard to the environment, climate change and the circular economy — explained:

“Today, we are faced with not one but two deep transformations. The first one, driven by emerging technologies such as artificial intelligence, blockchain, the Internet of Things, 5G and many others, is changing how governments, businesses and individuals will act in this new century. As for the second transformation, climate change, it disrupts ecosystems, jeopardizing biodiversity, food and water security and the future of life on our planet. The question for us is whether humanity can turn this digital revolution into climate action and, most importantly, whether we can do it before it is too late.”

As Zhao continues: “With more and more people coming online, more data being generated and more devices connecting to the network, the digital ecosystem’s carbon footprint is growing.”

The Asia-Pacific region boasts tremendous potential, owing to the growing prominence of mobile payments and the development of central bank digital currencies, or CBDCs, in countries such as Australia, China, India, Japan, Singapore, South Korea and others. China’s Blockchain-based Service Network is developing a global network that will support future CBDCs from multiple countries.

The adoption of 5G technology is a catalyst for the implementation of blockchain to improve scalability and interoperability. And China’s Huawei and ZTE; South Korea’s Samsung and LG Electronics; and Japan’s Sony and NEC are leading the way in 5G technology.

Huawei was the world’s first company to offer 5G technology and ranks number one as a global telecommunications equipment maker. However, the United States is restricting the company’s access to American technology that is key to producing modern 5G handsets and new 5G-capable mobile telecommunications infrastructure. As a result, the company has seen its market share decline outside China.

This has also had a spillover effect on blockchain technology adoption, which enables telecommunications infrastructure to meet unprecedented service-level requirements by bolstering operations, data sharing and customer identity verification, and detecting telecom fraud. According to Denian Shi, deputy chief engineer of the China Academy of Information and Communications Technology, the development of the global blockchain industry saw reduced investment/financing and cooled down during 2019 and 2020.

The role of digitalization has become central to continued economic and societal activity and to lessening the pandemic’s impact. According to recent reports, the Asia-Pacific region is expected to contribute about 19.3% of the overall global spending on blockchain technology, fueled by increased investments by the fintech sector. Integration of biometrics in smartphones amid the COVID-19 pandemic is expected to grow blockchain-based digital identity solutions by 21% annually.

The ever-increasing demand for connectivity and bandwidth by billions of devices in the region has made it important for wireless networks, blockchain platforms and computing devices to limit the total communications energy consumption and associated carbon footprint. With 5G being commercially deployed worldwide, LG Electronics and Huawei have already begun working toward launching 6G networks, which will be “50 times faster than 5G” in spectrum efficiency, positioning capabilities and mobility. Studies show that 6G could provide energy self-sustainability to the massive so-called “Internet of Everything,” with blockchain technology central to addressing significant challenges.

The world’s top solar energy adoption is in the Asia-Pacific region

The energy sector is the world’s number-one pollutant, accounting for 72% of global greenhouse gas emissions, according to the Center for Climate and Energy Solutions. With energy demands continuously increasing — pushing CO2 emissions to their highest levels in history — methods of generating large quantities of clean energy have become a survival concern for the Asia-Pacific region. As a result, the region has shifted its focus to the decarbonization of the grid and the production of electricity from renewable energy. During March alone, 65 new renewable power plant contracts were announced in the region, and nearly 80% of these plants are solar.

China leads the world as the top producer of solar energy, seeking to transform its industrial structure, economy and society with disruptive innovation in the next-generation photovoltaic module for earth and space applications. India ranks second, Japan third and Vietnam fourth in the region. Three out of these four countries are also conducting research on space-based solar power and power beaming as a solution for the region’s transition toward carbon neutrality, with Japan and China emerging as international leaders in this area.

Recently, the U.S. Naval Research Laboratory conducted its Photovoltaic Radiofrequency Antenna Module Flight Experiment, or PRAM-FX, to transform solar power into radio frequency microwave energy aboard the U.S. Space Force’s X-37B robotic space plane. According to Paul Jaffe, innovation power beaming and space solar portfolio lead at NRL, PRAM-FX is a 12-inch (30.5 centimeters) square tile that collects solar energy and converts it to microwave power, but does not beam it anywhere. Instead, the experiment gauges the performance of sunlight-to-microwave conversion.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Selva Ozelli, Esq., CPA, is an international tax attorney and certified public accountant who frequently writes about tax, legal and accounting issues for Tax Notes, Bloomberg BNA, other publications and the OECD.

XRP price surges 55% to a 3-year high amid push for financial inclusivity

April 6, 2021 Coin Telegraph

Coin Telegraph

A new cross-border payments acquisition and a renewed push to increase global financial inclusivity triggered a 55% rally in XRP price.

The price of XRP saw a 55% breakout over the past two days as the sixth-ranked cryptocurrency by market capitalization has renewed its focus on the creation of a cross-border payment network that is inclusive and sustainable.

Data from Cointelegraph Markets and TradingView shows that XRP dropped to a low of $0.566 in the early hours on April 4 before a wave of trading volume helped lift its price to a high of $0.877 within the last few hours.

*XRP/USDT 4-hour chart. Source:* *TradingView*

The uptick in trading volume was sparked after Ripple posted a blog titled “Creating a More Financially Inclusive and Sustainable Future” that discussed how the project has partnered with “mission-driven financial technology companies, leading universities, NGOs, foundations and social entrepreneurs to create greater economic fairness and opportunity for all.”

A second wave of buying took place on April 5 after Ripple posted the following announcement detailing its most recent acquisition designed to enhance its cross-border payment capabilities:

#ICYMI – We've announced our acquisition of 40% stake in cross-border #payments specialist @Tranglo. Details on our recent announcement here. https://t.co/3YQPtNGrwF
— Ripple (@Ripple) April 5, 2021

Combined, these recent announcements have led to a 257% increase in XRP trading volume over the past two days, from an average 24-hour volume of $5 billion on April 4 to $18.4 billion traded on April 5.

While this rally caught many traders by surprise, VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for XRP on March 31, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

*VORTECS™ Score (green) vs. XRP price. Source:* *Cointelegraph Markets Pro*

As seen in the chart above, the VORTECS™ Score for XRP climbed into the green and registered a high of 67 on March 31, roughly four days before the price began to spike.

The VORTECS™ Score also rose significantly alongside the price increase on April 5, reaching a high of 84 at the time of writing. Previous backtesting of the VORTECS™ system indicates that based on its rising score, the price of XRP may still have further upside to go, as trading and Twitter volumes continue to show significant increases.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.

Africa’s solarized digitalization agenda in the time of coronavirus

March 20, 2021 Coin Telegraph

Africa

The COVID-19 pandemic has highlighted the necessity for the digitalization and sustainable development of African economies.

The seventh session of the Africa Regional Forum on Sustainable Development convened earlier this month with the theme “Building forward better: Towards a resilient and green Africa to achieve the 2030 Agenda and Agenda 2063” and to promote the economic, social and environmental dimensions of sustainable development.

Amina Mohammed, deputy secretary-general of the United Nations, pointed out that developing a just, fair economic model that embraces green and renewable energy, resilient infrastructure, and digitalization — while protecting natural resources by broadening partnerships for science, technology and innovation — could unleash the region’s green potential and fuel economic transformation.

UNECA’s digital agenda

According to a paper titled “Harnessing Emerging Technologies: the cases of Artificial Intelligence and Nanotechnology,” which was provided by Victor Konde — scientific affairs officer at the United Nations: “The global pandemic caused by [COVID-19] has highlighted the importance of technology and innovation in developed countries. [...] Digital technologies have transformed how people work, interact and access services.” It also highlights the “interest in the role of emerging technologies in driving Africa’s transformation” and in achieving the UN’s Sustainable Development Goals.

As the document states, the United Nations Economic Commission for Africa, or UNECA, conducted profound policy research and “provided policy advice to member States on several emerging technologies, such as blockchain, artificial intelligence and nanotechnology.” The paper continues:

“The digital economy is unpinned by several key technologies, some of which include artificial intelligence (AI), cloud computing, blockchain, Internet of Things (IoT), virtual reality, and augmented reality. However, as UNCTAD noted, China and United States currently own 75% of patents on blockchain, account for half of global spending on IoT and their firms accounts for three quarters of the global market of commercial cloud computing. As a result, China and the United States account for 90% of the 70 largest digital platforms while Africa and Latin America account for a combined share of about one percent (1%).”

The internet and tech giants, such as Google and Facebook, spend billions of dollars in an attempt to get more people online in Africa despite a backlash from governments that are trying to shut down access to these services. At the same time, Vera Songwe, UN under-secretary-general and executive secretary of the Economic Commission for Africa, pointed out:

“Africa could expand its economy by a staggering $1.5 trillion dollars, by capturing just 10% of the speedily growing artificial intelligence (AI) market, set to reach $15.7 trillion by 2030.”

Digital currencies in Africa

Africa is the second-largest continent in the world in terms of both territory and population (roughly 1.3 billion people), and cryptocurrency is in big demand for the following reasons:

Countries’ national fiat currencies are vulnerable to double-digit hyperinflation, according to the UN.
Africa has a high unbanked population, a high penetration of smartphone use and an increasingly young, migrating population.

During 2020, monthly cryptocurrency transfers under $10,000 in value to and from Africa — often traded person-to-person across the 816 million mobile phones in Sub-Saharan Africa alone — skyrocketed 55%, “reaching a peak of $316 million in June.” They traded with a large margin that reached up to 70% due to the small number of cryptocurrency retailers. Individual citizens and small businesses located in Nigeria, South Africa and Kenya accounted for most of this trading activity.

China is the largest trading partner of many African countries. It has been investing ($45 billion in 2019, according to the United Nations Conference on Trade and Development) since the mid-2000s into Africa’s technology, communications and finance infrastructure, and blockchain technology education. Already, Egypt, Kenya, Rwanda and Eswatini have been researching central bank digital currencies, or CBDCs. As a BRICS nation, South Africa is piloting one as part of Russia’s multinational digital currency initiative that will be linked with China’s mobile Digital Currency Electronic Payment system supported by its Blockchain-based Service Network.

Nigeria is the world’s second-largest BTC market

In its “Nigeria Digital Economy Diagnostic Report” of 2019, the World Bank laid out the country’s digital economy potential. Only a year later, amid the COVID-19 pandemic, Nigeria surpassed China and currently ranks second in the world in Bitcoin (BTC) trading, even though it lacks the regulatory framework to support the digital asset business activity.

Bitcoin trading provides a source of income for an increasing number of unemployed young people in addition to a means of sending and receiving cross-border payments. For example, BTC funded the 2020 #EndSARS protests against police brutality, which were carried out by young people nationwide and spread beyond Nigerian borders, parallel to solidarity protests in different parts of the world.

Recently, the Central Bank of Nigeria banned banks from servicing crypto exchanges and is incentivizing citizens until May 8 to use licensed international money transfer operators for cross-border payments. Nigeria’s securities regulator followed suit by suspending its planned regulatory framework for digital assets. This ban is expected to be in place until a well-devised concrete regulatory framework for the $1.8 trillion cryptocurrency market is developed, perhaps one that incorporates the Nigerian Technology Industry Group’s core policy suggestions of instituting Know Your Customer, Anti-Money Laundering and Combating the Financing of Terrorism regulations. As the chairman of the Economic and Financial Crimes Commission, Abdulrasheed Bawa, explained:

“We are going to digitalise our processes and we are going to create a new full-pledged directorate of intelligence to enable us gather intelligence so that we will be proactive in our fight against economic and financial crimes and by so doing we will also provide the government with necessary quality advice that will lead to good governance.”

The solar energy potential of Africa

Africa has abundant energy resources, including solar energy, as it receives more hours of bright sunshine during the course of the year than any other continent. But it lacks reliable access to modern energy, which is needed for digitalization.

The continent is determined to green-energize and solarize its digitalization, as it is most vulnerable to the impacts of climate change, even though it contributes minimally to CO2 emissions. With the exception of Eritrea and Libya, African countries have ratified the Paris Agreement with ambitious nationally determined contributions.

According to forecasts by the International Renewable Energy Agency, “With the right policies, regulation, governance and access to financial markets, sub-Saharan Africa could meet up to 67 per cent of its energy needs [from renewables] by 2030.” And as pointed out by Songwe, it can “provide access to energy to over 70 per cent of Africans who are without access currently.”

Egypt is leading regional efforts to transition to green/solar energy, with the continent experiencing a surge of growth in new solar installations, mainly driven by nine countries. In a first-of-its-kind project, Egypt recently entered into a joint venture with a Chinese company to locally manufacture sand-to-cell photovoltaic solar panels, with China having ramped up its overseas green investment to 57% under the Belt and Road Initiative, according to research from the International Institute of Green Finance.

Conclusion

The national lockdowns and international travel bans imposed as a result of the COVID-19 pandemic have accelerated green digitalization efforts across African markets, which have promoted democracy and cryptocurrencies and broken down geographic barriers to collaboration and distribution. Nigerian songwriter and singer Burna Boy, with his music, and Ghanaian artist Amoako Boafo, with his paintings, conquered the world during 2020.

Accordingly, the UN has dedicated the whole year of 2021 to the creative economy, as it plays a critical role in promoting sustainable development for a green recovery from the COVID-19 pandemic. A sustainable green recovery plan necessitates understanding the links between climate change, health and inequality, and it requires implementing ambitious climate change policies that align with the Paris Agreement. More important than ever, these goals provide a critical framework for a green COVID-19 recovery. The 12 art shows exhibited at the seventh session of the Africa Regional Forum on Sustainable Development conference reflected these themes.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Quotes in this article taken from previously published sources have been lightly edited.

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