China reiterates its stance against cryptocurrencies and the price of Bitcoin falls 7%. Bitcoin fell to $ 60,000 after hitting an all-time high; meanwhile, China reiterates the ban on cryptocurrencies.
The National Development and Reform Commission of China (NDRC) is the main economic planning institution in the Asian country. He has declared that cryptocurrencies are not issued “by monetary authorities” and therefore “are not real,” the institution told various Chinese state media.
After this event, there was a 7% drop in the price of Bitcoin. Also, other cryptocurrencies such as Ethereum and Binance Coin have lowered their price in the last 24 hours.
The NDRC has also strongly criticized “high energy consumption” by cryptocurrency miners. I also point out “not at all promoting the industrial and technological development of the country.”
The People’s Bank of China (BPC) and other banking and regulatory institutions during the past month. They published various statements highlighting the different “illegal and criminal” activities generated by “cryptocurrency transactions.” What caused a massive exodus of the Chinese miners towards other regions of Asia.
This NDRC warning comes days after the expulsion from the Chinese Communist Party of the former chairman of the Central Jiangxi Province Political Conference, Xiao Yi, was made public. Due to “misuse of his political power to benefit and support companies linked to cryptocurrency mining.”
Last week, local Chinese media reported Xiao Yi’s impeachment. After a political trial in which the Central Commission for Inspection and Discipline of China determined that the political official “violated the industrial policies of the nation.” According to the Hong Kong newspaper South China Morning Post.
China and its persecution against cryptocurrencies
These statements by the NDRC are not the first time this year that China has committed to cracking down on cryptocurrency mining. China had multiplied its efforts to suppress and persecute cryptocurrencies since September when it banned cryptocurrency trading and said it would investigate mining operations.
China accounted for more than 75% of Bitcoins mining worldwide earlier this year, according to research published by the journal Nature Communications in April. However, the continuous prohibitions and regulations throughout the year have caused a massive migration of miners to other countries on the Asian continent.
China has targeted cryptocurrencies for a few reasons in the national interest. The Chinese authorities view cryptocurrencies as a huge financial risk and as a way for people to evade the nation’s strict economic controls. The cryptocurrency ban comes just as the Chinese government launches a digital version of the yuan. This would allow the central bank of China to exercise greater control over the flow and exchange of money of its citizens.
Furthermore, China is also trying to meet its climate goals to become a carbon-neutral country by 2060. And cryptocurrency mining could threaten this national goal. The practice of cryptocurrency mining consumes a lot of energy as China struggles with a serious power shortage, which has led to the constant power rationing of millions of homes and factories in the country.
