How Green Are Our Payment Methods?

We live in a world that is all about buying and selling, and thus, we rely on our different payment methods. And believe us, there are many of them available. From the traditional use of paper money to cryptocurrency to the endless supply of digital payment options, there is no shortage of ways to pay for things. rajkotupdates

But all this begs the question of how these different payment methods affect the planet. As consumers, we are more aware of the ways that our activities harm or help the world we live in but how do the different payment methods stack up?

The Different Payment Methods ztec100

The many different payment methods we use have an inevitable impact on the planet.

  • Crypto

Cryptocurrency refers to a currency based on blockchain technology and is one of the newer payment methods around. Cryptos have had a bit of controversy regarding their environmental impact as those tokens based on a proof-of-work consensus need a lot of energy to operate. clochant

However, projects in the crypto space have been working to combat this impact for years and this is often done by switching to a proof-of-stake consensus. Top tokens like Ether did this and many new tokens are following this lead. As Goran Radanovic writes, many  upcoming Coinbase listings are based on proof-of-stake, making them much better for the environment.

  • Paper/Metal Money

Paying for things using paper notes and metal coins is the most traditional method and while it is still used today, it carries a significant environmental impact. The paper money, naturally, requires a large amount of paper to print every year and this impacts the tree population. We also have to consider the sheer energy use required to fell the trees, print the notes, extract metal, mint coins, and much more.

Using paper/metal money worldwide has a big cost to the environment, especially during periods of deflation and economic crises like the COVID-19 pandemic. During these times, governments print/mint more money to stabilize the economy but this can end up hurting the environment. 

  • Digital Wallets

Digital wallets like PayPal offer a convenient way for customers to make payments to merchants all over the world simply using computers and mobile devices. And, as several reports have pointed out, eliminate much of the waste and carbon emissions associated with paper/metal money. Because these are done

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