China has recently shelved plans to ban Bitcoin mining in the country despite an existing blank cryptocurrency usage ban already in place in the country. The move comes after the recent government efforts called China’s Industrial Structure Adjustment Guidance which seeks to ban industries that the government considers “undesirable”.
The Chinese government continues to play an interesting role in the cryptocurrency circles with its latest move. The country has one of the world’s largest Bitcoin mining facilities installed in the world, some of them government-backed and many others operating under the watchful eye of the Communist party.
On the other hand, China has a blanket ban on cryptocurrency usage in the country except for special waivers in places like Hong Kong. So, essentially it means that Bitcoin usage in the country will remain banned while mining will continue to progress as usual keeping the country one of the biggest players in the world.
The reason behind this peculiar situation is that while Chinese authorities recognize the disruptive nature of Bitcoin and its strategic nature, they do not want to open the country to the cryptocurrency. Therefore, they are choosing to let the mining industry grow only which will the government leverage if in the future the Bitcoin network becomes an alternative global reserve currency of the level of the US dollar.
The cryptocurrency industry is likely to get a sizeable boost after this news as Chinese miners contribute significantly to the network.
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