New data has shown that the Chinese Yuan now accounts for less than 1% of global bitcoin trades - after the crackdown by Chinese authorities on the country’s cryptocurrency industry in recent months.
Data published by the Chinese Central Bank on Friday reveal that the once-dominant crypto behemoth has seen its currency’s share in bitcoin trading plummet - after at one point accounting for more than 90% of global trades.
After banning ICOs (Initial Coin Offerings) in September 2017, Chinese Authorities have adopted a tough stance towards crypto trading in an effort to combat the rapid proliferation of blockchain and ICO scams.
According to local media reports, officials have shut down 88 cryptocurrency exchange platforms and 85 ICOs since the ban - including a domestic ban on leading exchanges Binance and Huobi.
“The timely moves by regulators have effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend," said Zhang Yifeng, a blockchain analyst at the Zhongchao Credit Card Industry Development Company.
Guo Dazhi, research director at the Zhongguancun Internet Finance Institute, was also positive about the country’s tough stance:
"This indicates that the policy has been very successful. It is within expectations that the yuan's share in global Bitcoin transactions would drop after China announced the ban."
Blockchain Vs. Bitcoin
The country’s stance towards blockchain itself however, has been far from negative. In May, president Xi Jinping singled out the fledgling technology for its role in the state’s vision for a Chinese information revolution, while last month China State TV labeled blockhain the “Second Phase of the Internet.”
With no indication that the state has any plans to relax the official attitude and with crypto-adoption becoming increasingly international, it seems that the for the foreseeable future the Yuan will continue to play a minor role in bitcoin trading.