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.
Publication orders may be placed online or through the mail:
International Monetary Fund, Publication Services
P.O. Box 92780, Washington, DC 20090, U.S.A.
T. +(1) 202.623.7430
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