A photo essay documents Chinese crypto miners bidding farewell to mining farms after a regulatory shutdown. Smartphone maker Meitu lost $17.3 million in bitcoin investment but gained $14.7 in ethereum investment. Hainan’s government hopes to build a supply chain for the blockchain industry.
Crypto miners lament the end of an era
Blockchain
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The world of blockchain moves fast, and nowhere does it move faster than China. Here’s what you need to know about China’s block-world in the week of July 7 to July 13.
- Chinese crypto miners have bid emotional farewells to mining farms after authorities ordered mining companies to shut some farms and cut electricity to others. In a recent Caixin photo essay, a miner in his 30s said at a farewell dinner in June that the recent moves marked the “end of an era,” and lamented the loss of his job. In May, as a Tibetan woman in China southeastern Sichuan province unloaded mining machines shipped from Xinjiang, a major mining hub that was ordered to shut down, a Chinese photographer from Caixin documented the moment, saying that “the cords collected in her hands looked like a bouquet.” (Caixin, in Chinese)
- Crypto miners in China are selling used graphic processing units (GPUs) on resale markets following China’s bitcoin mining crackdown. The GPU can be used to mine Ethereum. Although Chinese authorities focused mainly on bitcoin miners, the crackdown was broad and affected miners of other cryptocurrencies. (The Block)
Meitu loses money on bitcoin bet
Smartphone and app maker Meitu said it had lost $17.3 million in bitcoin investment due to recent price slump. On the other hand, Meitu gained $14.7 million in ethereum investment. Before the price drop, the firm’s cryptocurrency assets (bitcoin and ethereum) were worth a total of $97.4 million. Meitu invested in crypto to reduce risk from holding cash and embrace technological innovation, according to the company. (Cointelegraph)
Chinese central bank official on stablecoins
Vice President of the Chinese central bank Fan Yifei said bitcoin and stablecoins have become a tool for speculation. “They pose a threat to financial security and social stability,” Fan said at a regular press meeting of the State Council, China’s cabinet. (China news, in Chinese)
Using blockchain technology
- Blockchain company Ok Group said it will work with police authorities in the eastern Chinese city of Nanjing to research using blockchain in anti-money laundering operations. The initiative will set up a research and development lab for on-chain data analysis, risk control, and talent training. (Coindesk)
- The government of the island province of Hainan aims to build a supply chain for the blockchain industry, according to the its five-year development plan on new technology released on July 7. The blockchain supply chain will be part of the larger governmental goal to bring RMB 400 billion ($61.8 billion) in revenue to its digital economy by 2025. (Hainan government, in Chinese)
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