PBoC Says China’s Share of Bitcoin Transactions Has Fallen to 10%

key ideas

  • The PBoC claims that China’s share of global bitcoin (BTC) transactions has fallen from over 90% to 10%.
  • The official note also claims that all peer-to-peer online lending platforms have withdrawn from operations.
  • The annual share of Bitcoin transaction volume in digital yuan fell to near zero.

After multiple crackdowns, the People’s Bank of China (PBoC) complaints that the nation’s share of global bitcoin (BTC) transactions has dropped dramatically from 90% to 10%.

Chinese BTC Stock Drops

In a recent report, China’s central bank claimed that the country’s share of global bitcoin (BTC) transactions fell by 80%. The PBoC’s Financial Stability Board released a detailed memo on March 3, examining the impact of the crypto crackdown on the nation’s financial markets.

The official note claimed that all online P2P (peer-to-peer) lending platforms have withdrawn from operations. In addition, outstanding loans increased from 1.2 trillion yuan to 490 billion yuan.

Aiming to “further curb the hype around cryptos,” the bank’s statement notes:

“Effectively dampening the hype of domestic virtual currency transactions, the global proportion of Bitcoin transactions in China quickly dropped from over 90% to 10%. Severely cracked down on illegal financial activities such as disorderly management of finances and driving without a license, and launched a special campaign against illegal fund-raising crimes.

The statement further said that 25,000 cases of illegal fundraising have been investigated and dealt with by the government over the past five years.

The PBoC’s Crypto Crackdowns

Notably, China’s first crackdown on crypto came in 2013 when it banned banks from handling Bitcoin transactions.

In January 2017, the central bank again began investigating the activities of crypto exchanges to bolster the weakening yuan and prevent money from illegally leaving China. The same forced the exchanges to close.

The final act did not appear until 2021, when the nation conducted multiple regulatory operations to eradicate Bitcoin mining from the country. By September 2021, he had ruled all crypto transactions illegal.

Data from Statista reveals that the annual share of Bitcoin transaction volume in digital yuan fell to near zero in 2018, after cryptocurrency exchanges were banned.

Source: Statistica

However, Bitcoin and most cryptos have a decentralized nature, which makes them difficult to ban. That said, many analysts have claimed that Chinese traders may have turned to foreign crypto exchanges via VPN to still access cryptos.

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