Cryptocurrencies in the sights of the Central Bank of China
The publication of the People’s Bank of China (BPC) lists the next areas of development of the financial institution. We learn that the Central Bank wants to continue to prevent illegal activities related to digital assets and cryptocurrencies:
” [La BPC] will continue to maintain strong pressure in the face of the media craze around virtual currency trading. “
As a reminder, cryptocurrency trading has been particularly controlled in the country since 2017: exchanges are therefore not authorized to operate in the territory. The Central Bank of China confirms that it wishes to continue to “supervise and guide companies and platforms to make full rectifications in accordance with regulatory requirements.”
👉 Find all the latest regulatory news
Miners in exodus and a developing digital yuan
Since June, China has also been particularly firm with cryptocurrency miners. Several provinces have cut the power supply to mining farms, or simply banned the activity. The miners were therefore forced into exile elsewhere, which sharply lowered the hashrate of the Bitcoin network. The government should therefore continue to “clean up” the industry, participating in the relocation of the global hashrate.
This new pressure does not come by chance: China is about to launch its digital yuan on a large scale, and it sees cryptocurrencies as competition. The government is therefore removing Bitcoin as much as it can, to make room for its digital currency, designed to challenge the hegemony of the dollar king. Traders and miners should therefore continue to suffer successive pressure blows from Beijing …
👉 To go further – China unveils the digital yuan white paper and confirms the use of smart contracts
Receive a recap of crypto news every Sunday 👌 And that’s it.
About the author: Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.