“Saving the environment” is scant reason for China’s hardline cryptography

The regulation of non-ecological cryptocurrency mining initiatives has been called the official history behind crypto printing in China. Excessive Sichuan hydroelectric power requires change.  

Government Welcomes Miners
Looking back, it seems surprising that the local government in Sichuan province has welcomed the crypto industry with open arms. The abundance of clean hydropower and the province’s inadequate development have encouraged both the government and crypto miners to view the area as a safe haven.Julianne Feinstein In July 2019, the Sichuan government organized demonstrations to help energy-intensive industries consume excess hydropower during the summer and autumn months, which would otherwise be lost. The state’s leading crypto miners have been honored at government events and meetings as model energy consumers who have helped lift locals out of poverty. This policy, favorable for mining, allowed Sichuan to become one of the leading centers of bitcoin mining in the country. 

Why Did Sichuan Suffer?
That all changed after the price of Bitcoin hit an unprecedented high of $ 65,000 per currency in mid-April. Then, at a meeting of the council’s State Committee on financial stability and development in May, Vice Premier Liu announced that the country would fight bitcoin mining and trading, citing uncertain financial risks. As a result, provinces such as Xinjiang and Inner Mongolia, which are heavily dependent on coal energy, have been forced to halt bitcoin mining activities. Thus, with an abundance of hydropower, Sichuan would ideally avoid the claws of pressure. However, the closure of activities in this province also suggests a concern beyond high-energy mining processes. 

No Good Reason For Pressure
The threat of “financial risks,” as the central government says

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