The state of New York is yet again determined to reverse the gains of cryptocurrency recorded in its territory following another controversial move toward shutting the crypto industry out of the state.
For a start, the state implemented the now-infamous BitLicense that drove all cryptocurrency service providers away and is currently considering a total ban on the Proof-of-Work (PoW) mining protocol. However, there appears to be a different version of the proposed move, with some saying that it is not a ban but rather a restriction to make PoW mining difficult in the state.
Accordingly, the state assembly is set to vote on a bill that will establish an authorization of PoW mining operations in the state unless the energy source for the mining is 100% renewable.
The above statement was released by the Bitcoin Advocacy Project, a pressure group working toward saving New York from itself. That is, working against those opposed to the progress of the state.
What makes the situation more worrisome is that the current Mayor of New York, Eric Adams, campaigned for his election on a pro-Bitcoin platform by promising to receive his first three pays in Bitcoin as a show of support for the flagship cryptocurrency.
Before his election, Adams was reported to have revealed that he intends to make New York a crypto hub and the center of blockchain technology innovation and businesses. However, in a twist, the mayor has now renounced his earlier pledge by saying that he supports cryptocurrency, not crypto mining.
Like China, Like New York
Observers have expressed their reservations about the ill-advised move by the New York authorities, and they believe it to be a monumental mistake if the state’s decision-makers are to go ahead with the proposed China-like ban.
Hundreds of high-paying jobs will be moved out of New York, and the state will miss the chance to become the epicenter of crypto innovations and development.
Meanwhile, some experts asked why the industry would accept to build a part of its wealth in a state that neither understand nor know what the PoW and its related products bring to the table.
As the ongoing controversy unfolds, the state of New York is set to be about miss a golden chance to make history as a digital finance hub in the United States due to the extreme measure it has put in place.
What’s next for New York?
The news has generated intense debate, with many organizations taking up the challenge to mobilize the people to prevent the state from cutting itself out of the new world.
According to the Blockchain Association, New York is about to become the first American state to ban crypto mining targeting the blockchain industry to curb energy use. The ban will have no impact on the industry as other neighboring states will welcome the initiative.
Everything points to the fact that the Major of New York is not conversant with the operation of the industry he wants to regulate.