KPMG touts ESG benefits from Bitcoin, counters misperceptions in new report
KPMG has released a report on Bitcoin and ESG (environment, social and governance) issues. The professional services firm, one of the world’s Big Four, found that Bitcoin “appears to provide a number of benefits across an ESG framework.”
Looking at each component of ESG separately, the report noted that emissions is a more significant indicator of environmental damage than energy usage. It contextualized Bitcoin (BTC) emissions in relation to those of other sources that ranged from tobacco to tourism and found it was the second smallest contributor behind “Video (US).” It concluded:
“Bitcoin’s emissions may be lower than often discussed.”
The report repeated common strategies for improving Bitcoin’s carbon footprint, such as using more renewable energy and energy produced from methane for mining.
BREAKING: KPMG, one of the ‘top 4’ largest accounting firms in the world acknowledges the positive impacts #Bitcoin can have on the environment. pic.twitter.com/LjxvELm3yg
— Dennis Porter (@Dennis_Porter_) August 1, 2023
Bitcoin’s contribution to money laundering is tiny compared to the total; money laundering accounts for 2-5% of world GDP, the report said, citing United Nations Office on Drugs and Crime statistics, while it accounts for just 0.24% of Bitcoin transactions, per Elliptic. It also noted that laundered money was received in Bitcoin far less than in Ether (ETH), stablecoins or alt coins, and Anti-Money Laundering (AML) and Know Your Customer (KYC) measures could be applied at the point of off-ramping the coin, even though there are no AML/KYC requirements for transacting with it.
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Positive use cases were provided again, such as fundraising for Ukraine and electrification in rural Africa.
Bitcoin’s governance is “robust” as its rules cannot be changed without forking:
“This results in a system that cannot be abused or misused by those in power or even individuals with ulterior motives due to its decentralization.”
The 12-page report uses all secondary sources and familiar use cases. It points out, however, that Bitcoin remains misunderstood. The firm offers a number of crypto-related advisory services.
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