China Accelerates Digital Currency Push Amid Crypto Ban

PBOC Outlaws Cryptocurrency Transactions, Over 139 Million Use Digital Yuan

The Peoples Bank of China (PBOC) has implemented a sweeping ban on cryptocurrency transactions, effectively prohibiting the use of cryptocurrencies in the country. The PBOC cited the role of cryptocurrencies in facilitating money laundering and other illegal activities as the primary reason for the ban.

Over 139 Million Users for Chinas Digital Yuan

In parallel, China has witnessed a surge in the adoption of its digital yuan, with over 139 million users now utilizing the Chinas digital yuan app. The digital currency is currently accessible in nine major cities across the country, as China accelerates its transition towards a more digitized economy.

Crackdown on Cryptocurrency Mining

Chinas crackdown on cryptocurrencies has also extended to the mining industry. In September 2019, China was responsible for 75% of the worlds Bitcoin energy use. However, by April 2021, that figure had dropped to 46%, highlighting the impact of the governments efforts to curb crypto mining.

Despite Crackdown, Crypto Still Prevalent

Despite the governments crackdown and widespread reports that crypto is outlawed in China, the use of cryptocurrencies has not completely ceased. Individuals and businesses continue to engage in cryptocurrency-related activities using offshore exchanges and other methods to circumvent the restrictions.