Sichuan province in China will take steps to remain attractive to miners. Now more than half of the world’s mining Bitcoin facilities are concentrated in the region.
According to a message received on Monday from a local party organization, the Sichuan decision making advisory committee – a government backed think tank – held a meeting on Sunday to discuss topics related to the future development of the province.
During the meeting, former vice chairman of the China Securities Regulatory Commission Yang Jiang, now a member of the think tank, said that the combination of Bitcoin, blockchain and excess hydropower in Sichuan should create new opportunities for companies in the region. The comment was made in connection with the ongoing investigation by the local authorities of the Bitcoin mining enterprises in Sichuan, which are allegedly being created without the necessary permissions.
Jiang added that currently 70% of all BTC is mined in Sichuan, since excess and cheap hydropower, especially the summer, has historically been attractive to Bitcoin miners. At the same time, the blockchain startup Coinshare estimated that as of June this year, just over half of the BTC production capacity is located in Sichuan.
“Blockchain can be involved in any industry. Its main applications in the financial sector – digital currency and bitcoin – are key examples” – said Jiang.
Jiang suggested that the Sichuan administration devote efforts to further exploring how the region’s excess hydropower will help maintain attractiveness for cryptocurrency industries in order to explore new economic opportunities and growth.
Recall that last week the standing committee of the All-China Assembly of People’s Representatives adopted the first cryptography law in the country’s history, which will enter into force on January 1, 2020. In addition, after a recent speech by the Chairman of the People’s Republic of China, Xi Jinping, interest in blockchain and cryptocurrencies in the country has grown sharply.