The blockchain data platform Chiainalysis released the report on Wednesday, showing that China remains one of the largest cryptocurrency markets in the world.
According to the report, addresses estimated to be under the control of Chinese users in the first six months have received more than $ 150 million worth of encryption, about a third compared to the U.S., that China is second only to the U.S. China remains one of the largest markets and is active in cryptocurrencies globally.
The Chinese suppress Bitcoin mining
More than 90% of Bitcoin ‘s mining capacity was lost because huge Bitcoin mining sites had to close in June.
The chain data reflect the weekly volume of Bitcoin mining basins below 5,000 BTC from about 10,000 as of mid-May, right after China has taken action against domestic Bitcoin mining operations. Figures for the past six months also show that the Chinese authorities have suffered from most Chinese, including Ant pool, Poolin, BTC.top and F2Pool.
The government considers very rich people, such as early Bitcoin miners and people who defend freedom or sovereignty, to be “naturally inclined dissidents.” The report, referring to the expert, explains that preventing the flight of capital and closing down illegal financial services companies is a priority for the Chinese government to maintain social stability and cohesion.
The digital yuan is unlikely to affect the dollar’s position in the short term
At the same time, the promotion of the digital yuan, a kind of central bank digital currency (CBDC), in China will bring fiat monetary reform globally and enhance diplomatic excitementespecially Sino-US relations. According to the report, China is working to set various goals, e.g.data – driven improvements in monetary policy; and enhanced control of citizens’ economic activities. “Internationally, China seems to differ from US government sanctions, i.e.n in the short term.
Yaya Fanusie, deputy director of the New American Security Center, assures that the digital yuan is unlikely to threaten the U.S. dollar in the short term. However, the digital yuan and CBDC could weaken the dollar’s dominance in the financial system in the long run. “They are trying to make arrangements with other countries where they allow for exchanges between the CBDC and the CBDC. Think of it as an atomic exchange for CBDC agreements… These transactions are not based on the SWIFT system. If they become the norm, people outside the U.S. will no longer need to keep U.S. dollars, ”Fanusie added.
Applies to cryptography in China
There were more than 1,100 suspects prisoner in June in connection with the commission of cryptographic crimes in China. The report concerns cryptography in China. More than $ 2.2 billion worth of cryptographic currency has been sent to Chinese addresses to addresses related to illegal activities such as scams and the dark network market, and they have received more than $ 2.0 billion.
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