People’s Bank of China (PBOC) has apparently set a goal of more vigilant monitoring and regulation of the energy consumed by the mining of crypto currencies. This should, among other things, reduceincreased demand for electricity in the People’s Republic.
China is one of the largest sources of mining power for Bitcoin mining and other crypto currencies. Meanwhile, a veritable market has developed for the provision of computer computing in the People’s Republic. Conversely, however, this also means that the more intensively China is handled, the higher the energy consumption and energy demand in the country rise.
At this point, the Chinese central bank would now like to start. As reported by consistent international media, the PBOC is planning a stronger regulation of energy consumption spent on mining crypto currencies. As a possible effect, the officials seem to hope for a reduction of mining income and thus a collapse of the Chinese mining market.
As the central bank responsible for monetary stability, the People’s Bank of China, while not directly involved in the energy supply of the Chinese people, has the ability to leverage it indirectly. For example, central bank can instruct regional governments to control and if necessary, limit the energy supply of the local population in order to prevent the use of energy and the processing power to mine crypto currencies.
This could push Chinese government against the circulation of crypto currencies in their country. Already last year, series of bans from China caused quite a stir in the crypto markets. Thus, People’s Republic had banned ICOs as a source of revenue in September 2017 , shortly thereafter also to close the largest crypto-trading centers in the country . With the impending curtailment of the energy supply for crypto-miners, the central bank also seems to want to eliminate the third pillar of the adaptation of crypto-currencies.
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Categories: Crypto Currency