According to CryptoPotato, crypto ESG advocate and researcher Daniel Batten has criticized an August 15 IMF report on Bitcoin mining emissions. In a post on X on August 16, Batten argued that the IMF report employs flawed rhetorical techniques, such as 'guilt by association,' by linking Bitcoin mining with AI data centers' energy consumption. The report, titled 'Carbon Emissions from AI and Crypto Are Surging and Tax Policy Can Help,' groups crypto and AI together, labeling them as 'power hungry' threats to the environment.
Batten suggested that such attack pieces typically come from entities that stand to lose from Bitcoin adoption, particularly central banks. He stated, 'With the scientific consensus and mainstream journalism now concluding that Bitcoin mining has significant environmental benefits, those who stand to lose most from mainstream adoption of Bitcoin (IMF, Central Banks) are needing to resort to direct attack-pieces.' He further claimed that, unlike AI data centers, Bitcoin mining has been shown to have a positive impact on power grids. Research indicates that flexible data centers, such as Bitcoin mining operations, have a net decarbonizing impact on grids, whereas inflexible data centers, such as AI, have a net carbonizing impact.
Batten pointed out that the IMF's own data sources reveal that by 2027, crypto's share of global electricity use and its share of global CO2 emissions will have decreased, while both will have increased for the AI industry. He also criticized the IMF for relying heavily on discredited or outdated sources, such as Alex de Vries and 2022 data from Cambridge University. Batten concluded that any reports from the IMF 'should be disregarded as being of a low research-standard,' and unusable to policymakers and regulators.
The IMF's Fiscal Affairs deputy division chief Shafik Hebous and climate policy division economist Nate Vernon-Lin wrote that a per kilowatt-hour tax 'would drive the crypto mining industry to curb its emissions in line with global goals.' They claimed that a higher tax would increase the average electricity price for crypto miners by 85%, potentially increasing yearly global government revenue by $5.2 billion and reducing emissions by 100 million tons annually. The IMF has also shown support for central bank digital currencies (CBDCs), reporting last year on increased interest in them and the development of its own platform.
