Tesla has stopped accepting bitcoin as a form of payment for fear that it will contribute to greater consumption of fossil fuels. The information was revealed by CEO Elon Musk in a tweet published on Wednesday (12).
The executive also said the automaker will no longer sell the $ 1.5 billion bitcoin stock it acquired earlier this year. The brand recently sold part of the cryptocurrency’s digital asset, which helped leverage quarterly earnings.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
In the statement, Tesla reveals that it will again accept bitcoin when the cryptocurrency mining process uses energy sustainably. So it looks for other digital currencies that “use less than 1% of the energy / transaction”.
“Cryptocurrency is a good idea on many levels and we believe it has a promising future. However, it cannot have a great cost to the environment,” said Musk’s statement.
Bitcoin already consumes more energy than Argentina, a factor that intensifies carbon emissions. However, there is no simple solution because the blockchain on which the cryptocurrency is built is inefficient in terms of energy.
This runs counter to Tesla’s mission to “accelerate the world’s transition to sustainable energy”. Likewise, the automaker was criticized by experts and investors after the announcement of the acquisition of the digital currency.