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China Drops Plan to Eliminate Bitcoin Mining Industry
November 06  |  2 min read

China’s Top-level Agency Dismisses Plan to Eliminate Bitcoin Mining

The COIN360 Editorial Team

The National Development and Reform Commission of the People’s Republic of China (NDRC) has dismissed an earlier proposal to phase the bitcoin mining industry
out of the country.

The agency submitted an earlier draft of the new Catalog for Guiding Industry Restructuring earlier this year in April and began receiving suggestions on the catalog in May. In it, bitcoin mining was targeted as one of the industries that should be eliminated from the country. Nevertheless, in the finalized version of the new catalog published by the NDRC this Wednesday, bitcoin mining, or other virtual currency mining activities, had been removed from the aforementioned category and there are no mentions of virtual currencies or bitcoin mining in the document. The new catalog will come into effect on Jan 1, 2020, and will replace the current version published in 2011.

The NDRC, formed in 2003, is a macroeconomic management agency working under China’s State Council. Among the functions of the NDRC are to study and formulate policies for economic and social development, and to guide the restructuring of the economic system of the country.

China is currently the world’s leader in bitcoin mining, with more than half of the industry’s mining taking place there thanks to the country’s low power costs. Last month, two of the world’s largest Chinese bitcoin mining equipment manufacturers Bitmain and Canaan announced they had filed for IPOs in the U.S. On Oct. 21 Bitmain launched its 50MW bitcoin mining farm in Rockdale, Texas.

Recently China’s president Xi Jinping referred to blockchain technology as “an important breakthrough for independent innovation of core technologies” and urged the country to “clarify the main directions, increase investment...and accelerate the development of blockchain and industrial innovation.”

On further blockchain developments in the country, the People’s Bank of China is reportedly set to be the first central bank to release its own digital currency, the DCEP (digital currency electronic payment).