Winklevoss twins-owned Gemini crypto exchange has purchased $4 million in carbon credits to offset the carbon footprint generated by Bitcoin transactions under its custody. The crypto exchange has also created a subsidiary in the form of Gemini Green in association with a non-profit organization Climate Vault,
Gemini will donate the purchased amount to the Climate Vault that has purchased the permits, for preventing 341,000 metric tons of carbon from entering the earth’s atmosphere. The decision by Gemini comes amid growing environmental concerns from energy consumption by the Bitcoin network. Winklevoss said,
“We are just playing our part to address the ESG conversation and component of Bitcoin that a lot of people have heard about, and they can come to Gemini and use Gemini Green custody, and they can fulfill their ESG mandates,”
Bitcoin network carbon emission concerns have two sides one which believes the network uses a lot of energy and wastes it, but has the potential to overcome the issue, especially after the recent Chinese crackdown. The other side believes people with such accusations don’t understand the working of the network and how the energy is used to provide security and decentralization.
Would Gemini’s Initiative Encourage Others
The Bitcoin energy debate has created a rift between the Bitcoin community and Elon Musk who last month announced Tesla would not accept Bitcoin payment owing to environmental concerns. The Bitcoin community has called it a fad and an attack on Bitcoin as they claim people are presenting only one side of the story. They claimed the network is cleaner than any other financial organization with over 50% of its energy coming from renewable sources.
Michael Saylor recently announced the formation of a Bitcoin mining council and headed its first meeting a few days back. The recent move by Winklevoss twins could potentially encourage other exchanges and organizations to follow the trend.