Chinese Yuan Isn’t The Top Dog In Bitcoin Anymore

The People's Bank of China says that from a 90% market share, the country's fiat currency now accounts for only 1% of global Bitcoin transactions.

Beijing Skyline

China’s central bank revealed July 9 that the country’s share in global crypto trade has taken a steep dive in recent months. The Asia Times says this is because of the government’s hardline stance against the crypto industry.

In comparison, Chinese exchanges last year accounted for more than 90 percent of the world’s crypto industry. The drop to a one percent share reveals the major impact the government’s restrictions made on China’s crypto industry.

Another local media outlet, Xinhua, quoted the PBoC’s report saying the national government’s policies ensured a “zero-risk” exit for the many cryptocurrency exchanges and ICO platforms shuttered since late last year.

China’s 2017 ban on ICOs and crypto exchanges became even stricter once 2018 rolled around, with government officials ratcheting up restrictions to include market-making platforms and services.

February saw China restricting access to offshore cryptocurrency exchanges and ICO websites by adding these to its national firewall.

Other media reports suggest that China isn’t backing off the ban any time soon, as it considers the volatile cryptocurrency market a threat to domestic investors.

Despite a hardline stand against cryptocurrencies, the PBoC has seen blockchain technology as essential, opting for tightly controlled integration of the technology into the financial sector.

Two weeks ago, the PBoC filed a patent for a digital wallet, the same month the central bank revealed a new, blockchain-powered system designed to tokenize paper checks.

Zhou Xiaochuan, the PBoC’s Governor, stated in March that while virtual currencies were inevitable and will surely lead to lower cash circulation, the bank still intended to control the unpredictable effects that could happen due to cryptocurrencies and certain blockchain applications.

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