China Looking to Ban Cryptocurrency Mining Soon?

China has done it again! After implementing a nation-wide cryptocurrency ban, the Chinese officials now have their sights set on cryptocurrency mining. The National Development and Reform Commission (NDRC), China’s industry body for macroeconomic policies, has proposed a ban on the sector citing Bitcoin mining as ‘undesirable’.

In the report, the NDRC has suggested that Bitcoin mining should be discontinued for China’s future development, and has also clubbed the activity with other sectors that have low productivity or result in heavy pollution. However, no timeline has been set for the proposed ban. The draft is currently open to public feedback.

Despite the cryptocurrency ban, China has remained one of the biggest cryptocurrency mining hubs in the world. It’s capital Beijing is home to the headquarters of mining giant Bitmain. The latest move only reinforces the heavy-handed approach China has been used to taking with regards to the businesses in the country.

While its earlier attempts to thwart global businesses such as Facebook and Google were seen as measures to protect its own homegrown businesses, this new development directly affects many Chinese companies and their employees which are engaged in their sector. So, why would China want to squander this advantage it already enjoys?

This is simply a battle for control. Not many regulators across the globe truly understand the power of a decentralised network like Bitcoin. China may have successfully banned centralised, global institutions in the past but can they really ban a decentralised, public blockchain network like Bitcoin? Many people have already started creating FUD anticipating doom for the cryptocurrency market if China bans crypto mining, but the cryptocurrency market has stayed strong despite many such hiccups before.

Even if China ends up banning cryptocurrency mining, the market will adapt and newer players and power centers will emerge to fill the gap. The battle against a global, decentralised network is a losing one!

Leave a Reply

Your email address will not be published. Required fields are marked *