Are Chinese Bitcoin Miners a Threat to the “Digital Yuan”?
Last Updated on 17 November 2020 by CryptoTips.eu
For the whole of 2020, China has been preparing the world for the roll out of its Central Bank Digital Currency or CBDC. In Beijing’s case theirs is known as the Digital Yuan. The Chinese Central Bank is the envy of the other world powers as it successfully launched its own digital coin and tested it in several major cities. However, one major problem remains for the Beijing government in matters of crypto, namely that the Middle Kingdom is still the most important landscape for Bitcoin mining.
Wall Street’s Capitalism
Of course, from the perspective of the communist government, it would be quite “capitalist” for the Chinese to be seen as the nation that has embraced Wall Street’s newly accepted digital coin (see our reporting on Citibank, PayPal, Square and many others for clear references of all of classic finance that have accepted Bitcoin as a proper investment vehicle) whilst also trying to launch their own digital yuan.
so a large number of bank cards It was frozen and even suffered heavy losses.This will accelerate the transfer of cryptocurrency mining from China to the United States, Kazakhstan and other countries. Rea more https://t.co/Vedzc7nw3Z
— Wu Blockchain(Chinese Crypto Reporter) (@WuBlockchain) November 16, 2020
This might just be the reason why the Chinese are finally directly interfering in the business of Bitcoin mining apparently. As the Wu Blockchain Twitter account reported in an interesting blog post:
A large number of bank cards It was frozen and even suffered heavy losses. This will accelerate the transfer of cryptocurrency mining from China to the United States, Kazakhstan and other countries.
Bitcoin Miners Have Yet Another Reason to Move Away from China https://t.co/Yo2pmJDOPS
— the crypto feed (@the_crypto_feed) November 16, 2020
There are also miners who said that their mining machines have been shut down for a month because they cannot sell the cryptocurrency to pay the electricity bill.
Just like democracy in HongKong looks to be on the losing end as of late because China exerts total control, Bitcoin mining in China itself would also need to make way for the country’s own crypto. In some strange sense though, that is one way of making sure that Bitcoin will be mined in another country for the foreseeable future of course.
We have no doubt the US will welcome this (new and) growing branch of industry.