China has been at the forefront of creating the digital yuan or DECP [Digital Currency Electronic Payment], but has stayed at a distance from the cryptocurrency community. The increasing crackdown on Bitcoin mining companies in China has had an impact on sentiment in the region and has now, according to rumours, expanded the ban on mining ventures in Inner Mongolia.
The nation would stop all mining-related cryptocurrency ventures. This decision accompanied China’s attempts to achieve its energy efficiency goals. The huge quantities of energy used by crypto and other industries such as steel, coke and methanol have resulted in the government’s strict decision to ban mining operations in the area.
The Autonomous Zone of Inner Mongolia has become a source of cheap power that has attracted the mining industry to it.
The goal of the region was to reduce emissions per unit of gross domestic product by 3% this year and to steadily control the huge boom in the use of standard coal. Although limited, the area accounted for 8 percent of global hash power mining in Bitcoin.
China owns 65 percent of the overall network hash power assigned to Bitcoin, and the above chart reveals that, among other areas, Xinjiang has been the largest contributor to the hash rate in a month.
The plentiful supply of coal and the relative remoteness of the area made it more easy and inexpensive for the miners to establish a base here. However, no stringent steps have been taken to put a stop to this issue by the Chinese Government. If the country continues its quest to become more energy efficient, it will not be long before mining firms have to find alternatives to cheap electricity available in different regions of China.
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