On its site, the State Power Company of China, Lanzhou, Gansu, declared that the district would form a working group to investigate Bitcoin and other digital currency mining firms. This has replaced the District’s attempts to develop energy conservation measures as part of its “14th Five-Year Plan.”
Companies involved in cryptocurrency mining must sign a letter of commitment
As per the story, the working group would conduct unannounced inspections of big data businesses. The relevant mining companies must also sign the ‘Commitment Letter for the Elimination of Bitcoin and Other Virtual Currency Mining Business Activities.’ The firms will also promise not to engage in any virtual currency-related activity, including Bitcoin mining and trading.
The Lanzhou New Area Company, in conjunction with the Gansu Energy Inspection Office, the Department of Industry and Information Technology, and the Development and Reform Commission, has organized a localized cryptocurrency mining ban.
Digital currency markets are unstable
The Chinese State Power Company underlined the unstable nature of Bitcoin and other digital currencies. It is said that crypto’s main flaw, among other things, is its excessive energy usage. The report also mentions financial supervision avoidance and a lack of legal clarity for digital currencies in China.
With the introduction of modern mining machines, the current trend of electricity theft has emerged. It facilitates large-scale energy theft, as well as a variety of cybercrime and money laundering crimes. According to the report, electricity theft would not only affect the power supply system, but will also designate cryptocurrency as a possible threat to national property. Furthermore, it critiques the decentralized structure for weakening the market economy’s norms.
Meituan to boost CBDCs and sustainability
Smaller Chinese districts and a large number of businesses are following the wave of Crypto bans to ensure a stable financial sector. Meituan, a Chinese online delivery behemoth, previously started giving Digital Yuan “red packets” worth 10 yuan ($1.55) to users to promote low-carbon travel. This project supports the Central Bank’s Digital Yuan and the country’s goal of carbon neutrality.