China Government Officially Labeled Crypto Mining As An Industry That Should Be Banned on January 10

On January 10, China government has declared crypto mining “obsolete,” underlining the government’s attempts to eliminate the industry entirely.

According to forkast, on January 10, the Chinese government “made the designation on Monday as an update to a 2019 policy document that spelled out how the country would shift its economy to a model that favored cleaner, less resource-intensive industries.” Nevertheless, the commission did not set a timeline for crypto mining in China to be officially eliminated.

Besides, in December 2021, Hainan Province hikes electricity fees on obsolete industries by around $0.12 per kilowatt-hour.

On the other hand, many analysts believe China’s prohibition on crypto trading and BTC mining is only a pretext to promote its state-owned Digital Yuan, based on blockchain technology. If Digital Yuan is popular, Chinese authorities will be capable of monitoring each transaction in the manner they choose.

Nearly 80% of the global crypto trade was provided by China’s inexpensive electricity and mining hardware-enabled companies. China relies on coal and lignite to power some of its mining operations and will not fulfill the crypto industry’s demands through renewable energy until 2060. According to Cambridge University, Bitcoin Electricity Consumption Index, Crypto-mining is expected to use 0.6% of the world’s total electricity production in 2021.

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