In a statement released on Saturday, the PBOC said that it will also supervise financial platforms to comply with regulations. It said that it will take steps to prevent major financial risks and lower the number of high-risk financial institutions in key provinces. It added that it will push for the creation of a financial stability law proposed by central bank deputy governor Liu Guiping in March.
China’s crackdown on crypto trading and mining
China launched the most intense crackdown on crypto trading and mining since 2017 amid increasing popularity and surging prices of Bitcoin (BTC) and other cryptocurrencies. The flagship cryptocurrency hit an all-time high above $63,000 in April before it plummeted due to the market meltdown. China is kicking out Bitcoin miners as authorities fear that the new asset class may be used in fraudulent activities such as money laundering. The move is also partly due to climate concerns as rising demand for coal in China and increasing electricity consumption are being attributed to crypto farms.
China’s digital yuan
China is clamping down on the cryptocurrency market as it pushes for its digital yuan, the e-CNY. Trials for the digital currency began in May 2020 with four participating Chinese cities. Since then, the PBOC has expanded the program to include local and foreign retailers, majors banks, digital apps, and even the city of Hong Kong. As early as next year, participants of the 2022 Beijing Winter Olympics may be able to pay for goods and services using the digital yuan as e-CNY trials expand to locations related to the sports event. [coinbase]
