To read this content please select one of the options below:

China crackdown reshapes cryptocurrency landscape

Thursday, July 22, 2021

Significance

Chinese provinces have banned cryptocurrency 'mining' (the creation of new units of cryptocurrency using complex computer calculations), affecting over 90% of global capacity.

Impacts

  • Falling demand for bitcoin mining equipment may help relieve the global shortage of semiconductors.
  • Relocation of mining to other countries will reduce or increase bitcoin's environmental footprint depending on the country's energy mix.
  • While cracking down on private cryptocurrency activity, China's government will enhance its own blockchain and digital currency programmes.

Related articles

Expert Briefings logo