IMF execs float raising crypto mining electricity prices by 85%

Two executives from the International Monetary Fund (IMF) have proposed increasing global electricity prices for cryptocurrency mining by up to 85% through a tax. This tax, set at $0.047 per kilowatt hour, could significantly reduce carbon emissions by 100 million tons annually, which is comparable to Belgium's total emissions. The proposal suggests that if local health impacts are considered, the tax could rise to $0.089 per kilowatt hour. The increased costs would not only incentivize crypto miners to adopt more energy-efficient practices but also generate an estimated $5.2 billion in annual government revenue. The IMF officials also mentioned a potential tax on energy used by AI data centers, which could yield an additional $18 billion per year. They highlighted that crypto mining could account for 0.7% of global carbon emissions by 2027, and when combined with emissions from AI data centers, this figure could rise to 1.2%. The executives emphasized the need for global coordination on such taxes to prevent miners from relocating to areas with less stringent regulations. They also noted that while crypto mining's emissions are significant, they are still lower than those of major tech companies like Amazon.

- IMF proposes an 85% increase in electricity prices for crypto mining through taxation.

- The tax could reduce carbon emissions by 100 million tons annually.

- Estimated annual revenue from the tax could reach $5.2 billion for governments.

- Coordination on global tax measures is necessary to prevent relocation of mining operations.

- Crypto mining could account for 0.7% of global carbon emissions by 2027, rising to 1.2% with AI data centers included.