Close on the heels of Chinese President Xi Jinping’s endorsement of blockchain technology, the Chinese government has scrapped its plans to ban cryptocurrency mining. Now, Bitcoin mining will not face a state crackdown in China.
The news marks a major positive for Bitcoin-related activities in China, a country where cryptocurrency outside the control of the central bank remains all but banned. This somersault in the Chinese government’s policy on cryptocurrency is quite interesting as China has for long been known as a somewhat anti-Bitcoin country. It has made countless efforts to throw off the Bitcoin community in the country, even going as far as banning mining and other crypto-related activities.
However, things seem to be changing slowly as the country seems to not just be in support of blockchain technology, but has also decided that it will not frustrate the Bitcoin mining industry.
Some months ago, the China National Development and Reform Commission (NDRC) proposed a list of industries in the country that should be disallowed from continuing its regular activities and on that list at the time, Bitcoin mining was included. Now, about 6 months later, the newly published Industrial Structure Adjustment Guidance Catalog from the NDRC, conspicuously omits crypto mining.
Interestingly, the latest news on cryptocurrency news comes after China’s President Xi Jinping publicly declared support for blockchain technology, urging the general public to embrace the technology and all that it offers. Ever since the president’s endorsement, China has been come a lot more pro-blockchain and has published lists of hundreds of registered blockchain projects in the country.
Furthermore, the country has also concluded a new cryptography law which is expected to take effect from January 2020. The law will monitor and guide the growth of the sector in the country, but also make sure that no blockchain project gets in the way of national security or ever threatens the sovereignty or power of the state.
China has been developing its own Central Bank Digital Currency (CBDC) and is set to release it to the public. Although no launch date has been publicized so far, China will very likely be the first country to float its digital currency.