China switched to Miners, Crackdown continues

China has announced that it will fight the mining of cryptocurrencies in the country. The authorities are trying to protect the financial system and at the same time reduce carbon emissions

Earlier this week, Chinese regulators announced their intention to ban the use of digital tokens in financial transactions.

Now the authorities are thinking about how to limit the mining of cryptocurrencies.

This was announced by the chairman of the Committee on Financial Stability and Development of the State Council, Liu He. According to the official, the government ” deliberately suppresses bitcoin mining and trading activity.” He also added that the company should not take on the individual risks of individuals.

Cryptocurrency in disgrace

The ban on mining digital coins caught the industry by surprise. These measures may affect the entire cryptocurrency industry, as 65% of the bitcoin hashrate is located in China. The statement does not contain details about what restrictions the government is going to impose on miners.

However, according to Li Yi, the chief researcher of the Shanghai Academy of Social Sciences, this statement will be a harbinger of new restrictive measures. “We should prepare for the fact that the relevant departments, including law enforcement, will develop detailed measures to ban bitcoin mining in the near future,” he said.

Earlier this week, China announced that it would ban financial institutions from using cryptocurrency services. The news comes a month after the deputy governor of the Central Bank of China (PBOC) called bitcoin an “alternative investment.”

China actively implements CBDC

Over the past few months, China’s activity in promoting the central bank’s digital currency (CBDC) has increased. The rapid rollout of the digital yuan even caught the attention of the Biden administration.

The US is still taking an observer position on the CBDC. Meanwhile, China is leading the global race to implement CBDC.

At the time of writing, Bitcoin (BTC) is trading at $37,800. During the week, the digital coin fell by 23%.

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