The Bank of China (PBoC) will publish a new communiqué in which it reiterated its efforts to suppress any illegal activities related to the trade in cryptocurrencies in China.
China officially banned financial institutions from doing cryptocurrencies in 2017 and was subsequently part of the pressure that led to the exodus of BTC miners from the country in the first half of 2021.
As early as 2017, the regulations meant that all the leading cryptocurrency exchanges that had their operations in other countries had to leave mainland China, and the fresh ones from this year, which were supported by three major payment associations in China and Chinese regulators. provinces forced most BTC miners to close down and look for new jobs elsewhere.
The PBoC stated in a recent report that it had succeeded in suppressing cryptocurrencies and that “it will continue to exert high pressure to curb the madness of virtual currency trading.”
At the same time, a new report by the Bank of China once again draws attention to the risks of unregulated digital assets and was published with the clear intention of discouraging any business entity in the country from thinking about continuing its business.
The aforementioned actions of the PBoC with the support of the Chinese government led to a significant decline in the BTC hashrate in May, as Chinese miners had a historically dominant share in its mining. In September 2019, their share was estimated at more than 70% of the total hashrate and, more recently, at more than 50%. After the end of their mining, the BTC hashrate dropped from a record 198 EH / s to 89EH / s in May. At present, however, it is again entering a growing trend.
The goal is to suppress BTC and speed up the adoption of the digital yuan
Many experts explain the efforts of the Chinese government and the central bank of China to suppress BTC and other cryptocurrencies in the background in connection with the upcoming Chinese national cryptocurrency (CBDC) digital jüan, which could be introduced to the world in a grand way during the 2022 Beijing Winter Olympics.
According to a central bank report, 70.75 million transactions were used in July, or last month, and by the end of July, the value of those transactions had reached 34.5 billion yuan and $ 5 billion, respectively.
According to recent data, the digital yuan is already supported in more than 20 million wallets, and the government is pushing commercial banks to increase the adoption process among the population. Every employee working in Chinese banks should reportedly bring at least 300 clients to their digital wallets in one year, and they can promise them various benefits and gift items.
Unlike BTC, the digital yuan is a highly centralized cryptocurrency, through which China can gain even better and better oversight of its people’s money, in line with the Chinese Communist Party’s long-term goals and ideas.