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Tesla will stop accepting Bitcoin as payment for its electric cars due to environmental concerns

The announcement also noted that company will not sell off its substantial Bitcoin holdings.

Updated: May 12, 2021 - 9:01pm

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Tesla's Elon Musk announced on Wednesday that the electric vehicle company will no longer accept Bitcoin cryptocurrency as a payment method for automobiles due to the environmental impact of Bitcoin mining.

"Tesla has suspended vehicle purchases using Bitcoin. We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel," Musk posted. "Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment."

However, the business magnate noted that Tesla will not sell off its substantial Bitcoin holdings and plans to resume accepting the cryptocurrency in the future when mining shifts to more sustainable energy. 

"Tesla will not be selling any Bitcoin and we intend to use it for transactions as soon as mining transitions to more sustainable energy. We are also looking at other cryptocurrencies that use <1% of Bitcoin's energy/transaction."