Inspired by its new fascination with the blockchain, China now seems to have changed its mind about the mining of cryptocurrencies. The latest version of a national macroeconomic plan indicates that the Beijing government has waived its intention to abolish the Bitcoin mining industry, in which Chinese companies have become world leaders.
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Mining must not be "eliminated"
The Industrial Structure Adjustment Guidance Catalog, published by the National Commission for Development and Reform of China (NDRC), has lost the reference to crypto-mining activities. This is actually good news since a project published earlier this year had mining industries that Beijing wanted local governments to get rid of. "This does not mean that mining is legal, but it is less so," said a Chinese miner contacted by news.Bitcoin.com confirming this information.
The final version of the document, published this week, will come into force in January 2020. The catalog lists the industries that it is advisable for regional authorities to encourage, restrict or eliminate. The initial policy proposal drafted in April by the central government agency reportedly mentioned the extraction of virtual currency in the "eliminate" category.
The NDRC, formerly the State Development Planning Commission, is responsible for macroeconomic management. It is headed by the State Council, which is China's main administrative authority that controls the country's economy. The commission develops economic and social development policies and guides restructuring efforts. With some 20 ministries and agencies under his supervision, he functions effectively as a mini-version of the Chinese government.
Chinese domination in the manufacture of bitcoins
The cheap electric power and the appropriate climate have turned China into a hotspot for the sector of digital coin strikes. The People's Republic of China is a world leader in the exploitation of bitcoins. Chinese control groups control about 70% of the total load of the BTC network. The most populous country is home to the world's largest mining and mining equipment manufacturers such as Bitmain, based in Beijing.
The Chinese government has treated various cryptography activities differently. While cryptocurrency and coin offer projects have been banned from the continent, authorities have largely ignored the mining of digital currency. In addition, in areas such as Sichuan, mining uses electricity from state-owned hydropower plants, even under contractual arrangements, as news.Bitcoin.com reported during the rainy season this summer. The recovery of this year's crypto market has made mining bitcoin profitable and anyone can participate without having to acquire mining equipment through services offered by platforms such as the Bitcoin Pool. .com.
China's role in both the traditional economy and the cryptographic space has been developing for years, but the ongoing trade war with the United States has forced the country to intensify its search for new paths of development. A recent Politburo speech delivered by Communist Party Secretary General Xi Jinping said Beijing had decided to place the blockchain at the center of the effort. And while China has never been particularly supportive of decentralized crypto-currencies, it has instead developed a digital yuan and the crypto markets have responded positively to this shift, which many see in the industry as a bullish step.
Do you think that the removal of crypto-extraction from the list of undesirable industries in China's macroeconomic plan will have a positive effect on the bitcoin mining industry? Share your thoughts on the subject in the comments section below.
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