Rhode Island proposes crypto rewards for green home builders

In Rhode Island, the House of Representatives proposed a bill that would credit house builders in “green coin” cryptocurrency to reduce their carbon footprint.

Green Housing Public-Private Partnership Act will require the state’s public utilities commission to publish annual reports on the carbon emissions and utility costs of housing projects. The state will issue a cryptocurrency credit to property owners if the project is able to lower its utility costs.

“Any reduction in utility costs due to housing construction projects pursuant to this chapter shall 24 be 25 assigned a credit amount, which credit shall be redeemable in a way of cryptocurrency in the shape of a green coin.”

The initiative would receive $500 million in donations from private banks, and $125 million from government sources. This would make it possible to be called the “Green Housing Fund.”

Although it isn’t clear which blockchain network “green coin” would use (if any), it would most likely be a cheaper proof-of-stake network that mainstream environmentalists favor these days.

The Green Housing Public-Private Partnership Act of Rhode Island

This bill is intended to address the sudden increase in Ocean State housing demand and further encourage home builders to adhere to environmental standards. The proposal says:

“Immediate action is required to develop housing using green-site standards in order to ensure that 3 of the goals set forth by the Act on Climate are met.”

According to The Providence Journal, the bill proposes to encourage new housing development in the state. The state is currently facing a housing shortage that has been exacerbated by rising prices.

Redfin, a housing data tracker, confirms that Rhode Island has experienced a steady decline in its housing supply over the past five years. February 2022 marked a 5-year low.

Related: Go green, or go home? What could the NY State Mining Moratorium mean for crypto industry

Although the Rhode Island legislature’s plan for crypto to be used to reward eco-conscientious builders is quite novel, it isn’t a new idea. Crypto in the housing market isn’t. To help pay for houses, it is increasingly common to use crypto mortgages.

A loan was issued by USDC.homes to an Austin, Texas homeowner late last month in USD Coin (USDC), via the Polygon (MATIC). Uncollateralized loans work in the same way as traditional loans. However, the down payment is also made in crypto and staked to earn interest that can be used by the borrower to pay the principal.

Bacon Protocol has been issuing NFT mortgages (nonfungible token) since November last year. It offers interest rates that are far lower than the national average of 5.5%.