In the recent past, transactions with the Chinese Yuan accounted for more than 90% of the world’s bitcoin transaction volumes.
After the introduction of strict regulatory measures against the cryptocurrency industry in the Middle Kingdom, this indicator fell to 1%.
Data, indicating a significant decrease in the volume of transactions with the yuan, were published by the People’s Bank of China.
In September 2017, China was banned for conducting ICO and, in addition, the government took a tough stance on trade bitcoin and other cryptocurrencies, in fact, squeezing the stock exchanges from the country. The stated goal was to counter fraud.
Since then, the Chinese authorities have closed 88 crypto-exchange platforms, including such large platforms as Binance and Huobi, and also stopped 85 ICO.
“Timely actions of regulators effectively reflected the consequences of powerful jumps and falls in virtual currency rates and laid the foundation for a global trend in regulation, ” said Zhang Ifen, a blockchain analyst at Zhongchao Credit Card Industry Development.
The actions of the regulators were also supported by Guo Dazhi, research director of the Institute of Internet Finance at the Zhongguancun Science and Technology Center.
“This shows that the policy of restrictions was successful. Expectations that after the introduction of prohibitions the share of transactions with the yuan on the world market will fall, were present from the very beginning, ” he said.
At the moment, there are no signs that the ratio of regulators to cryptocurrencies will be relaxed. Therefore, in the near future, the role of the yuan in trading bitcoin, apparently, will remain insignificant.
It is worth mentioning that while the Chinese authorities’ attitude to the underlying bitcoin technology, blockchain is far from negative. So, in May, Chinese President Xi Jinping singled out this technology as one of the main for the information revolution in the country. In addition, last month, China’s state television called the blockchain “The Second Phase of the Internet.”