China vowed to continue cracking down on the crypto hype, reiterating the commitment against crypto abuses in the list of policy priorities for the rest of the year so let’s read more in our cryptocurrency news today.
The people’s Bank of China said it will continue cracking down on illicit activities of crypto and maintain a high pressure of virtual currency trading hype and even barred the financial institutions from dealing with crypto a few years ago, kicking out BTC miners earlier this year. It is now working on its own digital currency alternative- the digital yuan. The People’s Bank of China said that China vowed to continue cracking down on crypto and illegal activities of virtual currency earlier this year and said it will continue to supervise the platforms dealing with finances and continue to crack down on the crypto trading hype.
The Chinese government has restricted crypto trading in the country since 2017 when it barred the Chinese financial institutions from dealing with crypto which prevented the exchanges from operating in the country. Three major payments associations in China confirmed the stance and commit to the regulation, claiming that the speculative trading was infringing on the safety of the people’s property and disrupting the normal economic and financial order. China redoubled its efforts by introducing restrictions on mining a few days later to prevent and control financial risks and the restrictions on BTC mining continued to rip ahead in June as well.
In September 2019, Chinese miners accounted for about 76% of all miners and after the restrictions took force, the BTC hash rate dropped by 76% from the 198 EH/s to 89 EH/s as the Chinese miners relocated abroad. While it cracks down on crypto, the PBoC is busy working on the central bank digital currency and as per the progress report from July, the central bank said the digital yuan has been used in 70.75 million transactions and reached a total value of 34.5 billion yuan. The digital yuan is not a cryptocurrency but the equivalent of China’s physical currency renminbi and it is held in a mobile wallet.
The digital yuan tokens have unique identifiers like banknotes, except the governemnt can track the digital version and see whose wallets is in it which makes it extremely convenient when the government wants to crack down on illicit activities.
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