Rhode Island Offers Cryptocurrency Incentives To Home Builders Who Use Low Carbon Materials

As part of a program dubbed USDC.homes, new homeowners in Austin, Texas, are offered loans in USDC and MATIC cryptocurrencies. This allows potential homeowners to put down a deposit in cryptocurrency, which is staked and earns the borrower interest that can be used to pay down the loan.

The $625 million endeavors will be funded by a pool of contributed funds. While bank donors are expected to provide the first $500 million, the government is slated to provide the remaining $125 million. This financial pool will be known as the Green Housing Fund if it is established.

Bitcoin accounts for roughly 0.52 percent of total global electricity use in December 2021. That may not seem like a lot, but according to Digiconomist, Bitcoin’s annual total energy consumption is around 204.50 terawatt-hours, which is roughly comparable to Thailand’s.

According to a CNBC study from February 2021, Bitcoin, the world’s largest cryptocurrency, has a carbon footprint similar to that of New Zealand, with both emitting around 37 megatons of carbon dioxide per year. A bill has been presented in the Rhode Island House of Representatives that would compensate a home builder with bitcoin for reducing the project’s carbon footprint.

Crypto Incentive For Reducing CO2 Emissions

Representative Carlos E. Tobon of Rhode Island has proposed a novel solution to the state’s housing dilemma, which, according to sources, would also aid in climate change mitigation: the creation of a new digital currency.

The Rhode Island Carbon Reduction Act was designed to stimulate the construction of additional LEED-certified buildings and houses by rewarding developers for whatever carbon reductions they achieve. A section of the bill’s text reads, According to a section of the bill’s language:

Any reduction in utility expenses resulting from any housing construction project conducted pursuant to this chapter shall be credited to the property owner in the form of a green coin given by the department. According to sources, the $625 million endeavors will be funded by a pool of contributed funds. While bank donors are expected to provide the first $500 million, the government is slated to provide the remaining $125 million. This financial pool will be known as the Green Housing Fund if it is established.

According to the Cambridge Bitcoin Electricity Consumption Index, Bitcoin accounts for roughly 0.52 percent of total global electricity use in December 2021. That may not seem like a lot, but according to Digiconomist, Bitcoin’s annual total energy consumption is around 204.50 terawatt-hours, which is roughly comparable to Thailand’s.

Bitcoin’s Huge Energy Consumption

Although Green Coin’s blockchain network is unclear, mainstream environmentalists favor the less expensive proof-of-stake (PoS) network these days. The housing supply in Rhode Island has been steadily declining over the last five years, reaching a five-year low in February 2022, according to Redfin, a housing data tracker.

In the meantime, this isn’t the first time cryptocurrency has been employed in real estate ventures. As part of a program dubbed USDC.homes, new homeowners in Austin, Texas, are offered loans in USDC and MATIC cryptocurrencies. This allows potential homeowners to put down a deposit in cryptocurrency, which is staked and earns the borrower interest that can be used to pay down the loan.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing