Governments in Asia are quickly researching or implementing CBDCs. What does this mean for the region’s overdependence on the U.S. dollar?
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.
Russia’s Irkutsk region saw its energy consumption rates surge by 160% following China’s crackdown on crypto mining.5016
The U.S. now accounts for more than a third of the total Bitcoin mining activity, with Kazakhstan and Russia also becoming major locations.6730
Binance is taking more measures to comply with China’s cryptocurrency crackdown with new restrictions in the mainland.5741
China's regulatory policies toward crypto used to be a major factor in market activity.6996
Chinese blockchain project BSN comes to Turkey and Uzbekistan after launching the BSN Hong Kong and Macau portal.8550
The "Big Mac Rubik's Cube" NFTs will be distributed to Chinese employees and customers by McDonald's China as a part of a giveaway.15662
Bitmain plans to identify green energy mining opportunities from power generation projects in Chinese provinces.12974
China’s wide-spanning crypto ban puts a hefty dent in token values, but the surge in DEX volumes and BTC’s pop above $55,000 suggest the move was a blessing in disguise.10133
The venture seeks to utilize sustainable energy practices throughout the operation process.5953
With increased concern about the carbon footprint that the crypto industry creates, alternative enterprise solutions emerge that can help cut down on the energy costs involved.83
- Tether fires back against report it is using reserves for investments and making crypto-backed loans
"If those loans fail, even a small percentage of them, one Tether would become worth less than $1," said Bloomberg reporter Zeke Faux.10893
Hedge fund manager Ken Griffin singled out crypto as a threat to the U.S. dollar and stated, “I wish all this passion and energy that went to crypto was directed towards making the United States stronger.”7937
Bitcoin mining profitability is up 275% since before the May 2020 halving.5352
The famous whistleblower referenced his statement about Bitcoin from March 2020 during the events of “Black Thursday.”9840