European Securities and Market Authority vice-chair, Erik Thedéen, wants the ban of bitcoin proof-of-work mining over the rising use of renewable energy.
Thedéen has raised concerns, terming it as a national issue that hinders climate change objectives.
He says that the proof-of-stake mining model is a better and more energy-efficient alternative.
Investment firm Melanion Capital terms the call for abolishing the PoW mining as a misinformed position.
The firm notes that the lack of an entity to defend the decentralization aspect of bitcoin should not be an opportunity to crack down on the sector.
Bitcoin energy usage forced Tesla to stop supporting it as a payment option in its operations, a position that Musk says he would reconsider if renewable energy is used.
Bitcoin Mining Council’s third-quarter report shows that renewable energy usage reached 58% as of the third quarter last year.