China crackdown reshapes cryptocurrency landscape
Emerald expert briefings · 2021
Significance Chinese provinces have banned cryptocurrency 'mining' (the creation of new units of cryptocurrency using complex computer calculations), affecting over 90% of global capacity. Impacts Falling demand for bitcoin mining equipment may help relieve the global shortage of semiconductors. Relocation of mining to other countries will reduce or increase bitcoin's environmental footprint depending on the country's energy mix. While cracking down on private cryptocurrency activity, China's government will enhance its own blockchain and digital currency programmes.