China’s economic body elevates the status of cryptocurrencies as mining is no longer on ‘to be eliminated list’

The last couple of weeks has been busy in terms of countries adopting Bitcoin, with China rapidly coming out in front as one of the regions with multiple ambitions. After the Chinese premier Xi Jinping and Central Bank officials made positive comments on blockchain technology, the country made another bullish statement recently.

Just recently, China’s National Development and Reform Commission [NRDC] released the final catalog for Guiding Industry Restructuring that will take place from the New Year.

Six months ago, the committee had stated that Bitcoin mining would be one of the industries that will be banned from the next year, but according to the new circular, the industry has been removed from that list. Many people in the field have stated that this was a great bullish signal for the industry with Dovey Wan, the Founding Partner at Primitive Capital tweeting:

“6 months ago CT was screaming abt “China banning bitcoin mining” when a fuzzy drafted ‘guideline’ was published by China state planning dept The official version is out:  cryptocurrency mining is removed from the ‘eliminating category’. The message is so clear here.”

According to the release, Bitcoin mining is no longer considered a category that is a serious waste of resources and must be eliminated. Even though mining has been removed from the list, it still does not mean that China officially recognizes or encourages mining behavior, be it for domestic mining companies or individual miners.

The Industrial Structure Guidance Catalogue serves as an essential basis for guiding government-managed investment projects and investment policies. The circular also deals with fiscal, credit, land, taxation, import, and export with the added duty of formulating the elimination category. With the recent announcement, blockchain technology joins industries like big data, cloud computing, and IT services as areas that need to be encouraged.

China’s impact has been so massive that even gold proponents like Peter Schiff have openly commented on the country’s decisions. Schiff, however, was of the opinion that the proposed gold-backed cryptocurrency in China will be bearish for the world’s largest cryptocurrency. Responding to Max Keiser, the host of the Keiser Report, Schiff stated:

“According to @maxkeiser I’m an idiot because I think #gold is better money than #Bitcoin. He also claims China is about to launch a crypto currency backed by gold. This is bullish for gold and bearish for Bitcoin. A crypto backed by gold is much better than one backed by nothing!”

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