Environmental campaign group finds BlackRock and JP Morgan Chase to be two of
the foremost proponents of Bitcoin.
Greenpeace is imploring the world's biggest asset managers to address the environmental effects caused by their investments in Bitcoin.
The environmental campaign group released a report on Tuesday that indicates financial services companies are contributing to an increase in pollution and the reliance on fossil fuels due to the investments and services related to the energy-consuming crypto-currency.
The report asserted that the amount of electricity consumed by Bitcoin mining around the world in 2022 would be 62 per cent from fossil fuels, which it stated: "will be equivalent to the total electricity used by some countries".
The organisation cited BlackRock, Fidelity Investments, Vanguard, Citigroup, JP Morgan Chase and Goldman Sachs as some of the most significant asset managers investing in Bitcoin, together with other financial entities, including Visa, Mastercard and American Express.
Greenpeace made the allegation that BlackRock and JP Morgan Chase are the "foremost proponents" of Bitcoin in their respective industries yet have taken no action to tackle the effects of Bitcoin on communities and the environment.
The report identified BlackRock as the "most detrimental asset manager" and JP Morgan Chase as the "largest advocate of Bitcoin".
In the report, Greenpeace noted that the issue has yet to be acknowledged and that there has been an absence of any responsibility for tidying up the Bitcoin system.
Comments have been requested from BlackRock and JP Morgan Chase.
The organisation pointed out that the energy consumption associated with cryptocurrency directly impacts the amount of greenhouse gas emissions, which is a problem when governments are attempting to reduce them.
In 2020, an estimation was made that Bitcoin generated 58 metric tonnes of carbon dioxide. Greenpeace warned that this amount of emissions will become more extreme if the energy-requiring procedures of the cryptocurrency are not altered.
Therefore, the organisation has requested that all parties involved, such as financial services companies, "unite, identify the issue and shape the future".
The Bitcoin industry, comprised of companies that facilitate the buying, storing, and selling of Bitcoin and those that operate industrial Bitcoin mining facilities, depends on access to traditional government-backed currencies and banking services.
Huge financial institutions and fund managers have invested much money into mining companies overtaxing the power grid and creating pollution. Payment processors are supporting Bitcoin's increasing energy consumption as its use increases.
Greenpeace maintained that to reduce the carbon and ecological impact of Bitcoin; financial institutions must transition away from the existing mining process and turn their attention to employing a "less energy-intensive consensus protocol".
Asset managers should declare the effect of Bitcoin in contaminating the atmosphere and back start-ups, non-profits, academics, and developers who are creating sustainable blockchain technologies.
Greenpeace asserted that Bitcoin, having debuted in 2009 and revolutionised the cryptocurrency industry, can display the solidarity of its supporters by devising a secure, decentralised consensus protocol which is beneficial to sustaining a livable environment.