China Focuses on the Ban of Cryptocurrency Mining – Merchants Accepting Bitcoin Increase Globally

April 12, 2019 Off Steven Anderson By Steven Anderson

Zhong told SCMP “Bitcoin mining will no longer be dominated by China become more decentralized.”

China as already known is not a fan of cryptocurrency mining.  When rules are in place, it is going to have a major effect on the position of China as a hotspot for crypto-mining.

The National Development and Reform Commission (NDRC) is the government agency in China, which focuses on setting new rules in order to ensure an effective ban of cryptocurrency mining.

The rules proposed by the agency will make the process difficult provided due enforcement is put in place.

The NDRC has outlined the amendment draft for guiding the industrial restructuring.  This outline is a draft of the economic policy where the agency is setting the guidelines accordingly to encourage, restrict, and eliminate specific industrial categories.

Virtual currency mining like mining Bitcoin according to the policy needs to be eliminated right away.  Residents in China are permitted to provide their feedback on the draft proposal until May 7, 2019.  Considering the resident opinion, the rules would be strengthened with appropriate tweaks and edits.

This proposed ban really seems to be an important subject matter for reasons related to the recent surge in the Bitcoin pricing, and all cryptocurrencies being mined on the GPU are being exchanged for the cryptocurrency. 

There can be a GPU shortage due to crypto-mining.  This might or might not happen depending upon the price volatility of Bitcoin.  For all reasons, it is clear that China is looking to ban cryptocurrency mining altogether.  Needless to say, the price of high end and mid-range GPUs went up during the crypto-mining gold rush.

Meanwhile, the preference for crypto is becoming widespread across the world.  In a survey respondents stated that they will be making use of cryptocurrency to pay for their lunch in five years.

A tweet from the official Twitter account of IMF read: “We would like to hear from you.  How do you think you will be paying for lunch in 5 years.”

A recent IMF poll stated that the cryptocurrency payments would become mainstream by the year 2024 with increasing numbers of Merchants.  About 26,000 votes were taken, and about 56% of them chose cryptocurrency, and the rest chose the mobile mode of payment.

The ongoing developments in the field of virtual currency payment imply that the options, which are provided by the IMF are not mutually exclusive.

While China focuses on the ban of cryptocurrency mining, the numbers of merchants accepting cryptocurrency is increasing across the world.

  • 1