Eco goals China’s reason for crypto crackdown? 

According to Chinese crypto-journalist Colin Wu, it appears that the main reason that drives China’s ongoing crypto crackdown is its big environmental goals. 

In his latest tweet, the journalist shared the observation of Caixin which, according to him, is the local government’s most trusted media outlet. 

The media outlet said that bitcoin and other cryptocurrencies’ rise is not in line with China’s vision of a carbon-neutral future. 

It also added that bitcoin’s so-called pricing power and being a powerful monetary instrument is irrelevant to the Chinese government and it would continue banning crypto-operations in the country. 

Cutting carbon footprint

Caixin highlighted that China’s crypto mining crackdowns should be seen as directly connected with its efforts to greatly reduce its massive carbon footprint. 

Cryptocurrencies require massive amounts of energy just to be mined, which means the use of fossil fuels is being accelerated just to produce them. 

And even with mining farms’ initiative to use green energy, it is clear that China won’t spare any companies related to crypto activities.  

But Wu’s followers challenged Caixin’s opinion and the majority thinks that tight-grip control over citizens’ assets might be the government’s real reason behind its series of crypto crackdowns. 

Even Michael Novogratz, Galaxy Digital CEO and a known bitcoin bull, also shares this view. 

Mass exodus

China’s approach towards cryptocurrencies is certainly much different when compared to what is happening in various parts of the world. 

It is also the main reason why miners are fast migrating to crypto-friendly places such as Kazakhstan, Miami, and Texas where they can continue their operations. 

Until now, there is no sign or any hint that the Chinese government would slow down or even stop with its continuous dismantling of crypto activities in the country. 

 

Image courtesy of Cointelegraph News/YouTube

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