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- Xiao Yi, former vice chairman of the Jiangxi provincial committee recently supported the mining of cryptocurrencies
- Consequently, the anti-corruption watchdog in China sacked the official allegedly over his actions.
The community of cryptocurrencies face intense scrutiny in regards to their mining & the way it affects the environment. In the earlier part of May, Tesla too decided to stop using bitcoin as a means of payment after witnessing a surge in the mining of the tokens using fossil fuels. China too issued a blanket ban on the mining of cryptocurrencies as it aims to be carbon neutral.
Recently the former vice-chairman of the Jiangxi provincial committee, Xiao Yi came in support & assistance in regards to the mining of cryptocurrencies, the move resulted in purging from the Communist Party of China (CCP).
According to reports, the former Vice-chairman had allegedly committed serious Violations of law & discipline & exploited his position thereby resulting in the termination of Yi as the vice-chairman.
The Central Commission of Discipline Inspection, also known as China’s anti-corruption watchdog, stated that Xiao Yi’s actions went against the CCP’s national industrial policy while also accusing Yi of further taking bribes to facilitate the transactions.
The government further issued a statement that Xiao Yi was found in violation of the new development & abused his powers for personal gain, thereby introducing & supporting mining activities that do not meet the standards of the policy.
China plans to become carbon neutral by 2060 which ultimately resulted in the ban of cryptocurrency mining as it looks at the sector which could hinder those targets. Although some also suggest that the country asserted the ban to create its own decentralised yet trackable central bank currency, which currently is in trials.
In the recent past, before the crackdown of the industry, China happened to be the primary location for crypto miners, especially Bitcoin miners. In recent findings by the Cambridge Centre for Alternative Finance (CCAF) it was noted that China’s share of mining fell down to 46% from a high of 75.5% in April of 2021.
The blanket ban had resulted in miners moving out of China & opting for places like the United States, Kazakhstan & Russia to pursue the mining of cryptocurrencies, while the prior two currently have the highest amount of Bitcoin miners in the world.
The National Development and Reform Commission (NDRC) with 10 authorities announced & issued statements to eradicate the mining of Cryptocurrencies.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
