An Edinburgh-based startup has pledged its support for a global initiative aimed at alleviating the environmental impact of cryptocurrencies.
Crypto wallet provider, Zumo, has been announced as a key signatory of the Crypto Climate Accord (CCA), which has been established to support the industry’s transition to 100% renewable energy and achieve net-zero emissions by 2040.
Inspired by the Paris Climate Agreement, the Crypto Climate Accord was created in cooperation with fintech and crypto industry leaders, Energy Web Foundation, the Alliance for Innovative Regulation and RMI.
As a signatory of the CCA, Zumo has committed to working alongside industry stakeholders on key projects which “prioritise climate stewardship” and seek to decarbonise the wider cryptocurrency sector.
“Zumo assents its time and expertise to facilitate and accelerate the development of the operating standards, tools, and tech necessary to achieve the objectives of the Accord,” the startup said in a statement.
The Crypto Climate Accord is based around a number of core principles, including community-driven action to “ensure crypto does not further exacerbate global warming” and recognition that there is still significant work required to build a net-zero crypto industry.
Other principles include a focus on open-source technology as a means of accelerating progress in decarbonisation.
Moving forward, Zumo says it and fellow CCA supporters will determine key areas in which their expertise can help to drive action and generate ideas and targets that contribute towards achieving the goal of industry-wide decarbonisation.
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Nick Jones, CEO of Zumo, commented: “Zumo has been climate neutral since our inception in 2018. The industry, of course, is not.
“However, ours in an industry evolved purely from pioneering tech innovation, and through initiatives such as the Crypto Climate Accord, we are mobilising quickly through collective responsibility towards a clean-tech future.”
Jones added: “As an early Accord Signatory, Zumo is committing proactive direct action to engage in knowledge-sharing initiatives and collaborative project development with our key partners to drive down the carbon footprint of our industry.”
Concerns about the environmental impact of cryptocurrency have increased in recent years, and since the beginning of 2021 the impact of Bitcoin has been a recurring topic.
Research conducted by the University of Cambridge found that the Bitcoin network uses at least 121 terawatt-hours (TWh) each year. By that measurement, this ranks Bitcoin as one of the top 30 consumers of electricity worldwide.
Broadly speaking, the increase in energy demands has coincided with an increase in popularity. Millions around the globe have invested in cryptocurrencies, and some high-profile investors have helped fuel this surge.
Earlier this year, Elon Musk’s Tesla announced it would begin accepting payment for its electric vehicles in Bitcoin. The decision was reversed shortly after due to the associated environmental concerns, however.