Sustainable finance and the green Bitcoin

Many financial institutions are at the forefront of developing market-based solutions to addressing environmental challenges. As a result, climate-friendly investment products comprise among others of green bonds where capital raised is dedicated for innovative projects that benefit the environment. This capital funds programs such as new infrastructure projects to help to improve the efficiency of delivering water, as well as water management technologies that enhance wastewater solutions. The demand for sustainable finance investments is tremendous. In addition, regulatory institutions such as the U.S. Securities and Exchange Commission pointed out that they plan to introduce new corporate disclosures on climate change.

The idea behind green equity includes a so-called green Bitcoin, too. The objective is to sell coins whose transactions are verified on the blockchain by machines supposedly powered only by renewable energy. For instance, DMG Blockchain Solutions Inc., an environmentally friendly vertically integrated blockchain and cryptocurrency company, and Argo Blockchain Plc, a UK-based global cryptocurrency mining company, announced in May 2021, their partnership in the Crypto Climate Accord (CCA) to promote the decarbonization of the cryptocurrency industry. Both companies will deploy new technologies that increase the transparency of the renewable energy sourcing of crypto mining. Sheldon Bennett, chief executive officer of crypto miner DMG Blockchain Solutions Inc., said, he has discussed with several financial institutions that want to buy Bitcoins that can fulfill increasing demand for ESG compliance. He is of the opinion that they are willing to pay a premium to get green cryptocurrencies.