In a new report, the cross-party Committee of MPs said that cryptocurrencies such as Bitcoin have “no intrinsic value and serve no useful social purpose”, while consuming large amounts of energy and being used by criminals in scams, fraud and money laundering.
Researchers estimated that that in 2020, Bitcoin mining used 75.4 terawatt hours of electricity (TWh) – higher electricity usage than Austria (69.9TWh) or Portugal (48.4TWh) in the same year.
The Committee also said that cryptocurrencies pose “significant risks to consumers” given their price volatility and the potential for major losses. Considering this, retail trading more closely resembles gambling than a financial service, the report said.
In February, the government published a set of proposals designed to protect consumers from the risks associated with crypto assets. This includes regulating the industry and efforts to rein in reckless business practices that characterise some of the organisations...