Recently, Chinese authorities announced a new phase to ban cryptocurrency mining in their country. They claim that this industry is “extremely harmful,” and will jeopardize their efforts to become carbon neutral. According to Meng Wei, spokesperson of China’s National Development and Reform Commission, the government wants to protect the environment and keep the economy growing. The new regulation is designed to prevent this from happening. The government also says it will protect the Chinese people from any harm caused by cryptocurrency mining.
The Chinese government has taken punitive measures against cryptocurrency mining, calling it “extremely harmful” and a serious setback for the country’s efforts to reduce carbon emissions. In September, the central commission for discipline inspection uncovered dozens of state-owned entities that had been using public resources to mine cryptocurrencies. In addition, it identified more than two dozen state-owned companies and Communist Party agencies as being involved in cryptocurrency mining schemes. In addition, Meng Wei said China will target commercial mining in the country and threaten institutions that are abusing subsidized power.
Cryptocurrency mining is a major cause of global warming. China has been experiencing a shortage of power, and mining requires a lot of it. Last September, the central bank banned cryptocurrency mining, and in November, it prohibited any new projects from operating in the country. Because of these problems, it is not surprising that the government banned this industry from their country. Beijing has also made it clear that cryptocurrency mining is impeding its ambitious climate goals. The country is on track to become carbon-neutral by 2060, but that doesn’t mean it’s going to let its citizens do it.
Moreover, China has an energy shortage and a lack of resources for centralized computing. As a result, bitcoin mining has caused severe problems in the country. The government has banned all cryptocurrency transactions and has banned all new crypto mining projects in the country. Additionally, the process of mining a cryptocurrency is also extremely energy-intensive, using up a significant amount of energy. Furthermore, crypto-mining requires a huge amount of electricity, and China’s goal is to be carbon-neutral by 2060 is not only impeding economic growth, but also the country’s climate targets.
Another reason for China to ban cryptocurrency mining is the fact that it is an anonymous currency, which doesn’t appeal to the government. The government is very careful about who uses a cryptocurrency, and they are keen to prevent it from being misused. However, many crypto mining firms in China use the electricity it receives from public sources, so the government is concerned that it will cause more harm than good. For example, one of their employees has an interest in bitcoin.