Front Matter
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

Title Page

FINTECH NOTES

Digital Currencies and Energy Consumptions

Itai Agur, Jose Deodoro, Xavier Lavayssière, Soledad Martinez Peria, Damiano Sandri, Hervé Tourpe and Germán Villegas Bauer

NOTE/2022/006

Title Page

FINTECH NOTES

Digital Currencies and Energy Consumptions

Itai Agur, Jose Deodoro, Xavier Lavayssière, Soledad Martinez Peria, Damiano Sandri, Hervé Tourpe and Germán Villegas Bauer

June 2022

Copyright Page

© 2022 International Monetary Fund

Digital Currencies and Energy Consumption

Note 2022/006

Prepared by Itai Agur, Jose Deodoro, Xavier Lavayssière, Soledad Martinez Peria, Damiano Sandri, Hervé Tourpe, and Germán Villegas Bauer

Names: Agur, Itai, author. | Deodoro, Jose, author. | Lavayssière, Xavier, author. | Martinez Peria, Maria Soledad, author. | Sandri, Damiano, author. | Tourpe, Herve, author. | Villegas Bauer, German, author. | International Monetary Fund, publisher.

Title: Digital currencies and energy consumption / Itai Agur, Jose Deodoro, Xavier Lavayssière, Soledad Martinez Peria, Damiano Sandri, Hervé Tourpe and Germán Villegas Bauer. Other titles: Fintech note (International Monetary Fund).

Description: Washington, DC : International Monetary Fund, 2022. | Fintech note | Note/2022/006 | June 2022 | Includes bibliographical references (page 21–24).

Identifiers: ISBN 9798400208249 (paper)

9798400212093 (ePub)

9798400212116 (Web PDF)

Subjects: LCSH: Digital currency—Environmental aspects. | Cryptocurrencies—Environmental aspects.

Classification: LCC HG17103.A3 2022

Fintech Notes offer practical advice from IMF staff members to policymakers on important issues. The views expressed in Fintech Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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Contents

  • Executive Summary

  • I. Introduction

  • II. Payment System Components

  • III. Comparing Energy Use Across Crypto Assets

    • Comparing Consensus Mechanisms: PoW and Non-PoW DLT Systems

    • Impact of the Control Level Enabled by Permissioned Relative to Permissionless Networks

    • Implications for Potential Energy Gains Compared to Traditional Systems

  • IV. Implications for the Environmental Aspects of CBDC

    • CBDC Core Processing

    • CBDC User Payment Means

  • V. Conclusion

  • References

  • Annex I: Energy Consumption of the Current Payment System

    • Estimates for the Digital Payment System Based on Credit and Debit Cards

    • Estimates for Cash

    • Conclusion

  • Annex II: CBDC Initiatives at Developed Stages

Digital Currencies and Energy Consumption
Author: Mr. Itai Agur, Jose Deodoro, Xavier Lavayssière, Soledad Martinez Peria, Mr. Damiano Sandri, Hervé Tourpe, and Mr. German Villegas Bauer