China’s Speeding Up “Legalizing” Bitcoin Mining as Cities in Sichuan Show Support
Government authority in China’s Sichuan province known as the world bitcoin mining capital has recently convened a seminar in a bid to encourage cryptocurrency mining operations to help consume excessive hydroelectricity and make up for the economic losses caused by the coronavirus outbreak.
In the seminar particularly on blockchain industry development, top government officials of the Garze Tibetan Autonomous Prefecture in western Sichuan province said they would make full use of the advantages of local territory and speed up building a hydropower consumption park.
The abundant hydropower resources during the wet season (usually lasting from May to October) as well as the cold climate in Garze have made it one of the world’s largest concentrations for bitcoin mining.
Apart from Garze, cities like Ya’an and Aba within Sichuan are also favored by bitcoin miners in the country. The three regions, with the lowest GDP in Sichuan province, however, are rich in hydropower resources which could fuel bitcoin mining operations, and the latter could, in turn, create jobs and economic benefits for locals.
In this sense, crypto mining is one of the few green industries that could bring certain income to the local people. In late April, the city of Ya’an has pioneered to issue a public guidance to support crypto mining.
Following the practice of Ya’an, its neighboring city Garze is publicly showing support for the bitcoin mining industry. The head of the Garze government said they would “take blockchain tech as fundamental and strategic project… increase the support for these blockchain companies on electricity, taxation and financial services…”.
As a result of bitcoin’s stagnating price movements ahead and after the network’s halving event, as well as the impact of coronavirus pandemic, the “bitcoin mining capital” Sichuan that’s estimated to account for over 50 percent of the total bitcoin network’s hashrate has allegedly seen a rare phenomenon of mining farms having a big surplus of miner slots though rainy season is upcoming.
The support of local governments will be an attraction for bitcoin miners. It also has positive significance for the legalization of bitcoin mining in the country where crypto mining operations were previously disfavored by Chinese authorities.