China’s Crypto Market: Digital Yuan as an Alternative to Private Cryptocurrencies

China—allegedly to preserve financial stability—banned mining of bitcoin and other crypto assets in such major mining centers as Inner Mongolia, Sichuan, Xinjiang and Yunnan. The total ban on mining was far from unexpected for miners as the Chinese authorities had repeatedly issued warnings over the risks of bitcoin mining since 2013. There are at least three reasons for the intervention of regulators in crypto mining in China. First, they need to combat speculation. Second, to eliminate competition with the digital currency of the People’s Bank of China. Third, to prevent environmental and other damage to society. We shall turn to each of these aspects in greater detail.

Source: https://moderndiplomacy.eu/2021/08/15/chinas-crypto-market-digital-yuan-as-an-alternative-to-private-cryptocurrencies/