The notion of China racing to launch a CBDC that will end U.S. monetary supremacy doesn't hold up if you look at the facts on the ground.
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.
The mining equipment manufacturer announced its intention to expand into mining when it went public last year.8674
Some of Asia's largest banking institutions are working together on a “multiple” CBDC project, designed to cross borders and navigate regulations easier than fiat.17815
Tencent-backed WeBank and Ant Financial-backed MYbank will reportedly be the first private banks to join China’s digital yuan pilot.10809
A Swiss blockchain developer and Geely will provide enterprise blockchain solutions to clients, with a focus on digital identity, regtech and privacy enhancement technologies.10562
Another Chinese banking institution has created a hardware wallet for the country’s central bank digital currency.12553
Chinese sports lottery service 500.com has entered a share exchange agreement to acquire major Bitcoin mining pool BTC.com.9834
Exploring where national security meets securities offerings in this week's crypto news.9670
Baidu is reportedly planning to commercialize its chip technology by setting up a dedicated subsidiary backed by crypto-friendly venture capital firms.13818
Chinese blockchain network Nervos has announced a $5 million fund to back emerging DeFi projects10689
China's market regulator finalizes rules that have been three months in the making.12885
Chinese GPU miners are apparently buying up Nvidia’s new GeForce RTX 30 laptops to set up ETH mining farms.25878
China’s first hardware wallet for the digital yuan supports dual offline payments without an internet connection.8767
Lawmakers are prepping new tools to pursue tech firms accused of anti-competitive business practices.18361
EY is collaborating with major Chinese blockchain projects like BSN and FISCO BCOS to expand its blockchain deployment in China.5410