Japan is a step closer to adopting cryptocurrency into its national portfolio.
During WebX2025, one of the largest crypto asset conferences, Japan's minister of finance, Katsunobu Katō, expressed his support for integrating cryptocurrency into Japan's "economic investment portfolio," per Cryptopolitan.
Recently, Japan's Financial Service Agency approved a yen-denominated stablecoin — a cryptocurrency tied to its yen to offer price stability.
As Japan embraces crypto, some people have raised concerns for the climate. Proof-of-work crypto models, which have computers constantly "mine" for coins, are extremely energy-intensive and produce a significant amount of e-waste as a result of needing to replace crypto-specific computer equipment that frequently needs to be upgraded.
Bitcoin alone consumes "about 91 terawatt-hours (TWh) of electricity annually, which is more than Finland uses," according to Crypto.com. The immense energy impact has resulted in regulations on the sector, and Katō stated "that [the regulations] are burdensome and suffocating the sector," according to Cryptopolitan.
Many crypto supporters believe that crypto, despite its emissions, could encourage the use of cleaner energy. Indeed, a recent Cambridge study found that less than half of bitcoin's power comes from fossil fuel sources — though around 47% of it still does, meaning the industry still has plenty of room for improvement to make a case that it isn't contributing to pollution.
TCD Picks » Upway Spotlight
💡Upway makes it easy to find discounts of up to 60% on premium e-bike brands
Crypto has also become more thoughtful about its energy use by making deals with plants for excess energy and capitalizing on waste heat from bitcoin mining to heat pools or convert it to other uses. Crypto coins can also be used as carbon credits, offering a financial incentive for greener decisions.
If the production and mining processes can become more sustainable, the technology may be promising. Newer proof-of-stake models — like Ethereum — use far less energy than PoW models like bitcoin, making them more environmentally friendly without major reductions in security.
Ethereum switched to proof-of-stake models and reduced "energy use by 99.95%, making proof-of-stake roughly ~2000x more energy-efficient than proof-of-work," per EY.
Jamie Elkaleh, the chief marketing officer for crypto-trading site Bitget Wallet, believes the yen stablecoin can bring many benefits to Japan.
TCD Picks » Stasher Spotlight
💡Stasher's reusable food storage options make it easy and affordable to live life with less plastic
|
Should the U.S. be investing more in battery production to catch up with China?
Click your choice to see results and speak your mind. |
Absolutely 📈 "Stablecoins are an important aspect of the economy," Elkaleh said, per Cryptopolitan. "They could simplify cross-border transactions, attract institutional investors striving for efficiency, and offer liquidity for government bonds that serve as collateral."
Meanwhile, Wood Mackenzie projected last month that data center electricity demands could triple in Japan by 2034, so all additional new energy requirements add up — leaving it all the more crucial that further forays into crypto and beyond be paired hand-in-hand with adding renewable energy generation to keep pollution to a minimum.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
