After a week of gloomy headlines and a brutal price dip, traders would do well to think long term.
With one of the largest populations and economies in the world, China is a major driving force in commerce, finance and technology and has a storied history with Bitcoin (BTC).
“China bans Bitcoin” has graced media headlines repeatedly since the cryptocurrency’s inception, which signifies the government’s severe distaste for a currency beyond institutional control. The banning of Bitcoin use in China has taken the form of severely inhibiting or shutting down Chinese Bitcoin exchanges, which are the main methods of accessing Bitcoin beyond peer-to-peer exchange.
Despite this friction, China has emerged as a key player in the cryptocurrency industry in two wildly different ways.
Firstly, most of the hashing power (i.e., mining operations) of the Bitcoin network is concentrated in China, as miners have access to incredibly cheap hydroelectric power, giving them a sharp advantage over competitors in other locations.
Secondly, the Chinese government is developing its own sovereign digital currency that will reportedly use blockchain, presumably with strict administrative and capital controls antithetical to most cryptocurrencies.
Stablecoins and CBDCs and their related issues of privacy and surveillance lead this week's Law Decoded.5442
The Blockchain Service Network integrates three more major blockchains.15460
The Director of National Intelligence wants to have the SEC’s leader briefed on the dangers of the U.S. falling behind in crypto.14664
The paper also put forward CBDCs as solutions to high transaction fees and the energy use of mining cryptocurrencies like Bitcoin.6669
Tied in with a national shopping event, the trial will add "offline" and "touch" functionality.6634
The $3 billion blockchain bond has been effectively cancelled.14387
While there is an unclear future for digital currency development under Joe Biden’s presidency, China is leading the race.27205
New and developing research from the International Monetary Fund suggests that central banks around the world need new legal definitions for tokenized currencies.11254
Crypto-friendly regulation may be in the eye of the beholder.6112
It is not currently clear when or if China Construction Bank's debt issuance sale will be rescheduled.8759
CBDCs won’t fundamentally be changing anything — central banks still want to control your wealth and your money.69732
Check out this week’s Bad Crypto podcast8399
China has a lot of advantages in the Bitcoin mining industry, though it won’t last forever, as more countries are entering the space.16640
The impact of China’s Blockchain Service Network may be limited, but the region’s national blockchain infrastructure continues to outpace other regions.8088