Green FinTech: sustainability of Bitcoin.

Area of Science:

• Environmental Science
• Financial Technology
• Economics

Background:

• The COVID-19 pandemic underscored environmental degradation and climate change as critical 21st-century issues.
• Green financial technologies are essential to transform environmental challenges into opportunities.
• The rise of digital currencies and the potential for a cashless society necessitate an evaluation of their environmental footprint.

Purpose of the Study:

• To investigate the relationship between financial technology (FinTech) and cryptocurrencies.
• To analyze the environmental friendliness of cryptocurrencies in the context of a potential cashless society.
• To provide a holistic approach to understanding the environmental implications of digital currencies.

Main Methods:

• Literature review and synthesis of existing studies on FinTech, cryptocurrencies, and environmental impact.
• Comparative analysis of the potential environmental benefits (e.g., reduced physical currency) versus drawbacks (e.g., energy consumption in mining).
• Holistic assessment framework development for evaluating cryptocurrency environmental friendliness.

Main Results:

• Cryptocurrencies present a dual environmental profile: potential for reduced physical currency use versus significant energy consumption from mining.
• The widespread adoption of digital currencies could accelerate the transition to a cashless society.
• Current energy demands of cryptocurrency mining raise serious questions about their 'green' credentials.

Conclusions:

• A balanced perspective is required to assess the true environmental impact of cryptocurrencies.
• Further research and technological innovation are needed to mitigate the environmental costs associated with digital currencies.
• Integrating environmental considerations into FinTech development is crucial for sustainable financial systems.