According to a recent Cambridge report, the United States is now leading global Bitcoin mining, raising questions about China's potential response. Although China has long maintained an anti-cryptocurrency stance, historically, Chinese mining pools have controlled a significant portion of the global Bitcoin hash rate.
The United States' current competitive advantage and new trade policy hostility could prompt China to reconsider. BeInCrypto spoke with representatives from Coin Bureau and Wanthe factors that could might could a change in its digital asset position.
US Becomes Bitcoin Mining Hub, Overtaking China
The United States has firmly established itself as the world's largest Bitcoin mining hub. According to a recent recent from the Cambridge Centre for (Alternative Finance
However, China later cracked down on this industry.
China>China Cryptocurrency Crackdown2><> the National Development and Reform Commission (NDRC) revealed its intent to , classifying it as an "undesirable industry" in a draft.Two years later, at least four Chinese provinces began halting mining operations. These crackdowns were intensified amid concerns about excessive energy consumption consumption p><>At the end of 2021, the government
Despite China's official stance on cryptocurrency, mining activity has not stopped within its borders. In July 2024, report Bitcoin environmental impact analyst Daniel Batten reported that the the hash rate from China currently accounts for approximately 15% of the global total.
China's activities in other international trade sectors have already proven how nuanced policy changes can be."Despite the official ban, already the is in: from overseas mining to cross-border tradingubs. As global momentum for cryptocurrency adoption increases and the US takes the lead, find strategic motivations to, evenic– Pucklin, Coin Bureau-co-founder.
, cryptocurrency mining, especially for Proof-of-Work cryptocurrencies like Bitcoin, relies on Application-Specific Integrated Circuit (ASIC) equipment to handle the complex calculations required for verification and mining.As a major exporter of cryptocurrency mining
The tariff disputes dispute between the two countries adds uncertainty to to the long-term cost-effectiveness of US mining operations.
Pucklin believes thatklin that trade friction and the US cryptocurrency's strengthening cryptocurrency of cryptocurrency dominance could prompt China to reconsider its position.
"It's unlikely that China will publicly withdraw its ban on cryptocurrency mining and trading soon. However, as US-based miners occupy an increasingly percentage higher proportion of Bitcoin's rate hash rate be, China is is paying attention attention and likely quietly reevaluating its stance." –ucPucklin, told BeInCrypto.
However, China strategies toaken without resuming the Bitcoin mining industry.
<><><2>China's Subtle Approach to to Escapeaping USAnceWhile China opposes widespread cryptocurrency use domestically, it can still see the value of digital assets to offset the global currency dominance of the US dollar.
Many countries worldwide are adopting or considering Central Bank Digital Currencies (CBDCsBCs), and China is at the forefront of these developments.
"Despite the Bitcoin mining ban, China is actively engaging in the the digital asset space through CBDC research and initiatives like the digital yuan or e-CNY." – Temujin Louie,Cryof Wanchain, told BeInCrypto.
In fact, China's efforts to create a digital yuan stem from a desire to promote de-dollarization and reduce dependence on the US dollar.
Louie also suggested that China will not rely solely on US actions, regardless regardless of its decisions."always, a nuanced approach is best when it comes to China. Policy changes are not due to US tariffs. Instead,, China's decisions will by market trends and its domestic strategy." –ie. >Human p:请将下面的文字翻译为英语，如果遇到<>，保留且不翻译<>中的内容，其他部分一定要全部�Human�英语div>。 国Human: 好意，请重新发送完整的文本。我没有看到任何文本。
Therefore, China's decision on digital currency will influence the development of its stance on cryptocurrencies.
The weakening of dollar dominance, exacerbated or caused by Trump's tariff approach, could prompt China to more aggressively pursue efforts to internationalize the yuan, especially the digital yuan or e-CNY. China's broad strategic changes will be reflected in its stance on cryptocurrencies," he concluded.
China's Contradictory Cryptocurrency Policy: A Sign of Change?
Besides China's interest in digital currencies like e-CNY, it has already proven its stance on cryptocurrencies to be somewhat contradictory. These inconsistencies could fuel the possibility of withdrawing or at least softening the complete ban on mining. A month ago, investment firm VanEck confirmed that China and Russia, two countries particularly burdened by US sanctions, are settling some energy transactions using BTC.Russia and China are settling oil trades in BTC. I've heard first hand accounts of similar transactions with Venezuela. Full tankers are settled in BTC on the "grey" market. The U.S. Government crossed the Rubicon in 2022 by seizing Russian assets at the Federal Reserve and… pic.twitter.com/Y8OwJROw9W
— Jonathan Hamel (@jhamel) April 9, 2025
According to Perklin's indicator analysis, China's "shadow cryptocurrency economy" is expected to expand this year, primarily in response to de-dollarization efforts. This is not a reaction to US mining dominance. "These activities are likely to increase in the near future, especially as more countries use cryptocurrencies to bypass the dollar-dominated system," he concluded. Interpreting China's intentions will remain crucial, especially regarding cryptocurrencies, by observing their actions rather than relying solely on official statements."As the US dollar is increasingly used as a political lever, especially in tariffed economies, other countries are actively seeking alternatives. In fact, many countries worldwide, including China and Russia, are already using BTC as an alternative to trade commodities and energy. This trend will accelerate as digital assets become a more important part of the global economy," Perklin told BeInCrypto.
