Analysis of the environmental, social and governance challenges that accompany the development of digital currencies. The development of cryptocurrencies is an important aspect of the modern economy, as it combines technological innovation with monetary evolution.
Digital currencies, such as Bitcoin, are not issued by central banks but operate on decentralised networks, thus providing greater transparency and anonymity in transactions.
Despite their many virtues, such as low production costs and resilience to traditional monetary ills (e.g., inflation), cryptocurrencies also carry significant environmental challenges.
The energy consumption for Bitcoin production, for example, is huge, with CO2 emissions increasing exponentially in recent years.
This has sparked the need to seek less energy-intensive methods of digital mining, such as the Solana cryptocurrency, which offers a more sustainable alternative.
The social implications of using cryptocurrencies are also noteworthy, as they require high levels of technical training from users.
This creates a digital divide that mainly affects older or less technologically skilled citizens.
These challenges highlight the need to develop a specific legal framework that will facilitate the further integration and regulation of digital currencies in the financial system, while promoting technological innovation with respect to environmental responsibility and social justice.
Digital currencies, such as Bitcoin, are not issued by central banks but operate on decentralised networks, thus providing greater transparency and anonymity in transactions.
Despite their many virtues, such as low production costs and resilience to traditional monetary ills (e.g., inflation), cryptocurrencies also carry significant environmental challenges.
The energy consumption for Bitcoin production, for example, is huge, with CO2 emissions increasing exponentially in recent years.
This has sparked the need to seek less energy-intensive methods of digital mining, such as the Solana cryptocurrency, which offers a more sustainable alternative.
The social implications of using cryptocurrencies are also noteworthy, as they require high levels of technical training from users.
This creates a digital divide that mainly affects older or less technologically skilled citizens.
These challenges highlight the need to develop a specific legal framework that will facilitate the further integration and regulation of digital currencies in the financial system, while promoting technological innovation with respect to environmental responsibility and social justice.
