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China has managed to stay relevant with its progress in central bank digital currencies [CBDC]. However, the country seemed to be taking down the entire Bitcoin mining industry.
Right after Elon Musk insinuated a crypto carnage, China decided to impose a ban on crypto mining. While China entails some of the most prominent mining equipment firms, the country’s mining ban could pose to be hefty for these platforms. A Chinese-based mining equipment platform, Canaan Inc. seemed to be taking a stand against this untimely ban. The CEO of the platform debated that China could loosen laws further making way for green-energy users.
China’s big crypto mining takedown
Zhang Nangang, the CEO of Nasdaq-listed, Canaan urged the Chinese government to reap the benefits of green-energy mining instead of outrightly banning it. Speaking on a conference call, the CEO added,
“For-profit miners prefer regions with low electricity prices that indicate oversupply, and likely energy waste. Bitcoin miners also help create jobs in impoverished regions and contribute to fiscal coffers.”
Since Canaan provides mining equipment, a ban on crypto mining would deprive the platform of garnering profits. The demand for Bitcoin witnessed drastic growth this year. With this, the sale of ASIC mining equipment also shot up. In Canaan’s quarterly report the CEO noted,
“Our financial performance improved significantly in the quarter, driven by the Bitcoin price rally, higher customer demand for quality mining machines, and our ability to ramp up mining machine production and deliveries.”
Additionally, with this ban making the rounds, Canaan was seen looking into expanding into other regions. Particularly in terms of Bitcoin mining, Canaan was reportedly looking forward to veering into Kazakhstan after setting up an office in Singapore.
Nangang noted that it would take a while for Bitcoin mining to be recognized by the regulators in China, just as long it took Bitcoin to be acknowledged in the market.