A Bitcoin Hotspot In China Is Banning All Cryptocurrency Mining To Curb Energy Use

“China is extremely concerned with social stability,” a former member of the National Reform and Development Commission , told me, requesting anonymity because of his ties to the government. The country employs strict currency regulations that are designed to prevent large amounts of currency moving out of the country. Crypto allowed people to skirt those regulations and were seen as a thorn in the side of Xi Jinping’s aggressive anti-corruption campaign, as corrupt officials could use them to siphon money out of the country anonymously. South Korea’s foreign minister met his Chinese counterpart in the southern Chinese city of Xiamen on Saturday, as Seoul seeks to improve ties with its top trading partner even as U.S.-China relations remain strained. Ahead of the trip, South Korea’s newly appointed Foreign Minister Chung Eui-yong told reporters that he expected North Korea to be a key issue in talks with Wang Yi. “Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering. Yet, others – including value investor Bill Miller – claim the currency will only get stronger, as the price of Bitcoin rises.

Chinese officials took notice, worrying that the yuan would not be included in Libra’s currency basket, amid a trade war with the US. “China’s trials have accelerated as a result of Facebook’s attempt to introduce Libra, even as the PBOC had been conducting research on a CBDC for many years,” said Dylan Loh, a China expert who teaches at the Nanyang Technological University in Singapore. The US has been slow to embrace the opportunity of a digital currency itself – in part because it would prefer to keep the status quo.

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Blockchain cryptocurrency wallet has announced it will hold an airdrop that will give 30 million users a total of $125 million worth of Stellar digital coins to help promote widespread use. Bitcoin’s revival has triggered strong gains from the top tier of cryptocurrencies as mainstream institutional investors include them in their portfolios. HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its Research business. HSBC’s analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC’s Investment Banking business. Information Barrier procedures are in place between the Investment Banking, Principal Trading, and Research businesses to ensure that any confidential and/or price sensitive information is handled in an appropriate manner.

This could lead to less dependence on the dollar in the region and other markets with similar ties to China,” Hernandez said. “China seems to be approximately five years ahead,” said Philipp Sandner, head of the Frankfurt School Blockchain Center at the Frankfurt School of Finance & Management. Unlike true cryptocurrencies, the most well-known of which is bitcoin, the digital yuan will not be based on the distributed ledger technology blockchain and will have its value stabilized against the yuan. Second, the underlying technology is different as the blockchain ledger will be controlled by the government and not distributed across the system. Finally, it is intended to operate exactly like a normal currency and integrated throughout the commercial system. Because the ledger is held by the government and is not distributed to mining nodes, the currency won’t have the time lags associated with bitcoin, making it practical to use in everyday situations.

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Initial coin offerings , once seen as a scam, are becoming a mainstream method for start-ups to raise capital. By late November 2020, the total market capitalisation of crypto assets stood at £476bn. COVID-19 has also boosted the use of digital cash, with digital payments becoming the norm. “The pandemic has led to an increased focus on digital cash to replace contaminable physical cash, in addition to creating more reliable, effective, and optimised mechanisms for the distribution of [COVID-19] relief funds. Last April, amid the COVID-induced panic that engulfed the planet, more shocking news came from China. The People’s Bank of China announced that it would start testing its own central bank digital currency , a first for a major economy.

This is not the first time that China has conducted a trial of this nature. Back in October, 10 million digital yuan was gifted to Shenzhen citizens as part of a lottery, which could then be spent at more than 3,000 outlets within a particular district of the city. The fintech arm of JD.com, JD Digits, will issue around 20 million digital yuan ($3 million) in total as part of a lottery for residents of the city of Suzhou. Winners will receive a “red packet” via a mobile app that contains 200 yuan of the digital currency that can then be spent through JD.com’s online shopping portal.

There is more than just crypto mining going on in the region, however, and you can read more pressing reports about what’s going on in Xinjiang Uyghur, including allegations of genocide from the US, over at the BBC. While Inner Mongolia certainly houses a lot of the world’s mining outfits, the most popular region for Bitcoin mining in China is Xinjiang Uyghur. That’s the nominally autonomous region which reportedly accounts for 36 percent of the country’s hash rate. All cryptocurrency mining efforts in the region will be shutdown by April, a draft plan posted to the Inner Mongolia Development and Reform Commission details . Digital Society is a digital magazine exploring how technology is changing society. It’s produced as a publishing partnership with Vontobel, but all content is editorially independent. Visit Vontobel Impact for more stories on how technology is shaping the future of society.

That’s just one cryptocurrency, and one not often powered by graphics cards. That would most often be Ethereum, which is the go-to for GPU miners and increasingly popular due to sudden and momentous increase in value in 2021, despite recent falls in profitability and hash rate limiters from Nvidia, introduced with the RTX GB.

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At the time of writing, it was currently sitting at $6,816 (£5,292) which is a sharp decline from the $10,000 it hit earlier in the month. Bitcoin ban in China is concerned, possession of Bitcoin is still legal but trading is illegal. Not just that, but since they don’t hold any legal status, China is not inclined on making them equivalent https://cryptonews.wiki/ to money and advises their citizens against their circulation as a currency. As a result, the Yuan-Bitcoin trading pair has dropped significantly from 90% to less than 5% of the world’s total Bitcoin trades, according to Shanghai Securities News. to protect the local economy and eliminate concerns of financial instability.

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• China-founded Binance, the most popular cryptocurrency exchange world-wide by trading volume which now operates outside the country, cancelled a media event that was scheduled to occur in Beijing, people familiar with the matter said.
• Although cryptocurrency has gained more media attention this year, we have yet to see whether China will decide to soften its regulations against cryptocurrency or not.
• All in all, ICOs and virtual currency trading can’t be completely withdrawn from China, despite the official ban.
• As a result, the Yuan-Bitcoin trading pair has dropped significantly from 90% to less than 5% of the world’s total Bitcoin trades, according to Shanghai Securities News.
• A further decline in the use of cash may also be a good thing in itself, since cash is the easiest method for people to engage in prohibited activities anonymously.
• A centrally issued digital currency would provide a reliable alternative to privately developed e-payment systems, including cryptocurrencies developed abroad.

Chinese tech giant Meitu announced that it had purchased $22.1 million worth of Ethereum and $17.9 million worth of Bitcoin. They join a growing list of institutional investors Cryptocurrency wallet jumping on board the crypto bus, though excitingly they’re the first from China to do so. A weekend of good news for cryptocurrency could bode well for the week ahead.

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Although endorsed by blockchain enthusiasts, such an innovation would increase funding costs and possibly raise interest rates on loans. The ECB’s balance sheet would also balloon, forcing the bank to acquire assets held against the digital euro. Fabio Panetta, who chairs the ECB’s CBDC task force, has said that the bank is exploring whether its settlement system could support retail depositors. “They will put a stop to anything they think could be a threat to their core business, even if they pay some lip service to it.

One reason for this Damascene conversion is that commercial banks have embraced the blockchain, the technology underpinning cryptocurrencies, with leading banks such as JPMorgan Chase using it for cross-border payments and settlement. One such venture is Project Ubin, a project designed by Singapore’s central bank that aims to provide a global payments platform for central banks. Chinese retailer JD.com has announced that it will become the country’s first online store to accept the digital yuan, the state-backed cryptocurrency that has been in development over the last few years. The adoption of the currency will come into force later this month as part of a pilot program exploring the facilitation of central bank authorized cryptocurrencies. For the government there are a number of factors that have driven its decision to launch DCEP. Bitcoin or Ethereum stand in contravention to central banks and legacy financial institutions. Last year the government moved to ban crypto-mining – prior to the regulations 70 per cent of the world’s bitcoin were mined in China.

Google’s “quantum supremacy” was then mirrored by experts in Beijing, a nation which remains aggressive towards decentralised cryptocurrencies like Bitcoin. When you subscribe we will use the information you provide what is cryptocurrency to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. Our Privacy Notice explains more about how we use your data, and your rights.

Government employees in four cities were paid in digital yuan, while four commercial banks began internal tests. By December, around 50,000 lucky citizens had received 200 e-yuan (£23) in their digital wallets to spend on apps such as the food delivery service Meituan. The release of the e-Yuan has attracted worldwide attention from investors hoping the cryptocurrency will reach heights to parallel those achieved by bitcoin. However, it is yet unclear to what extent China will include the cryptocurrency in its financial system as international skeptics argue that the currency will never be fully decentralized. The U-turn was revealed by CNLedger, a cryptocurrency news resource that focuses on developments in China.

Whether, or in what time frame, an update of this analysis will be published is not determined in advance. The value of and the income produced by the investment products mentioned in this document may fluctuate, so that an investor may get back less than originally cryptocurrency trading invested. Certain high-volatility investments can be subject to sudden and large falls in value that could equal or exceed the amount invested. Value and income from investment products may be adversely affected by exchange rates, interest rates, or other factors.

Performing such activities is considered illegal and can get you jail time. Though China is home to the world’s largest cryptocurrency mining farms, many Bitcoin mines in China had stopped operating or moved to a new location at the beginning of 2018. People who are interested in trading, mining and being part of the digital finance community will relocate, use VPNs or find other ways to practice what they find appealing to them. Not just distant but going to great lengths to make sure all cryptocurrency-related platforms, outlets and activities are completely wiped out. Since the official announcement last year, almost 100 cryptocurrency exchanges and almost the same amount of ICO projects have been shut down in China. ICOs and any other platform that conducts cryptocurrency exchange operations were prompted to move their operations to countries where such activities are allowed, such as Singapore. Blockchain and cryptocurrency-focused online media outlets were also shut down.