The People’s Bank of China (PBoC), which is the country’s central bank, has recently confirmed that Bitcoin trading in the Chinese Yuan (RMB) has drastically fallen from 90 percent in September 2017 to less than 1 percent now, reports Express. There is no doubt that this demise in the Bitcoin trading is due to the continuous crackdown by the Chinese authorities on all cryptocurrency-related activities taking place in the country.
China, which at one time grabbed a considerable market share of the cryptocurrency market, has now reduced to now having absolutely no dominance in it. The central bank, however, has been bragging about its exit and the fact that it has successfully ensured a zero-risk exit for more than 85 ICO trading platforms and 88 cryptocurrency exchanges, since September 2017.
Although the ban was initiated in September last year, the absolute ban was enforced in February 2018 after the central bank stated that it would “block access to all domestic and foreign cryptocurrency exchanges and ICO websites.” In the meantime, several crypto exchange operators shifted their base out of China to safer havens and crypto-friendly nations like Japan and Malta.
Expert Opinions On China’s Dominance in The Crypto Market
Zhang Yifeng, a blockchain analyst at Zhongchao Credit Card Industry Development Company, told Xinhua:
“The timely moves by regulators effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend.”
While talking to Asia Times, Guo Dazhi, research director at the Zhongguancun Internet Finance Institute, said:
“Th[e new figures] indicate that the policy has been very successful. It is within expectations that the yuan’s share in global Bitcoin transactions would drop after China announced the ban.”
While speaking to Express with China in focus, Jon Ostler, CEO of finder.com told that “the crypto industry is optimistic about the future.” He further said that one should keep an eye on the developments in East Asia. He added:
“China lifting its ban on cryptocurrency would likely have a significant impact on prices. It is such a big potential market that even murmurings of the ban lifting would probably push value up in the short-term.”
Apart from China, there is a lot of positive development taking place in the Asian market with two big crypto giants – Japan and South Korea – streamlining their crypto laws in accordance to the G20 directives.
China Still Leads In The Blockchain Patents
China’s beating-down of its crypto market should not be mistaken with its pursuit in the blockchain space. In fact, China has pocketed the maximum number of blockchain patents with the People’s Bank of China (PBoC) having filed for 41 patents till now.
As previously reported by CoinSpeaker, the PBoC says that the ultimate goal of the patents is to “break the silo between blockchain-based cryptocurrency and the existing monetary system” so that the digital currency can sport cryptocurrency-like features, while being widely used in the existing financial structure.