September 27, 2020

Sichuan will work on attracting cryptocurrency miners

Sichuan, China will take steps to remain attractive to miners. Now more than half of Bitcoin's global mining capabilities are concentrated in the region.

According to a message received on Monday fromA local party organization, the Sichuan Decision Advisory Committee - a government-supported think tank - held a meeting on Sunday to discuss topics related to the future development of the province.

During the meeting, the former vice-chairman of the CommissionChina's Securities Regulatory Authority, Yang Jiang, now a member of the think tank, said the combination of Bitcoin, blockchain, and excess hydropower in Sichuan should create new opportunities for companies in the region. The comment was made in connection with the ongoing investigation by the local authorities of the Bitcoin mining enterprises in Sichuan, which are allegedly being created without the necessary permissions.

Jiang added that currently 70% of all BTCmined in Sichuan, since excess and cheap hydropower, especially in the summer, has historically been attractive to Bitcoin miners. At the same time, the Coinshare blockchain startup estimated that as of June this year, just over half of the BTC production capacity is located in Sichuan.

“Blockchain can be involved in any industry. Its main applications in the financial sector - digital currency and bitcoin - are key examples, ”said Jiang.

Jiang suggested that the provincial administrationSichuan has devoted its efforts to further exploring how the region’s excess hydropower will help maintain attractiveness for cryptocurrency industries in order to explore new economic opportunities and growth.

Last week standing committeeThe National People's Congress (NPC) adopted the first cryptography law in the country's history, which will enter into force on January 1, 2020. In addition, after a recent speech by the Chairman of the People's Republic of China, Xi Jinping, interest in blockchain and cryptocurrencies in the country has grown sharply.

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