China accepted cryptocurrency in a big way. With easy access to cheap hardware, cryptocurrency mining is flourishing.
China’s cryptocurrency exchange BTCC accounts for 60% of bitcoin’s collective hashrate.
In early 2017, Chinese government suspended all withdrawals from cryptocurrency exchanges causing the bitcoin market to plunge sharply.
However, in mid-2017, Chinese government amended the cryptocurrency regulatory framework in order to allow withdrawals from cryptocurrency exchanges.
This spurred investor confidence in cryptocurrencies causing the market to rise.
Recently, Peoples Bank of China is said to be developing its own cryptocurrency. If this happens, China will be the first country to develop and run its own cryptocurrency.
With this, China will enable cryptocurrency to reach millions of Chinese citizen with no access to bank services, reduce cross-border transaction charges, reduce corruption and enable detailed analysis of data and draw economic insights in real time.
On the political front, a national cryptocurrency could further strengthen the position of the ruling Communist Party of China.