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Bitcoin Miners Eye Sichuan After Chinese President Calls for Blockchain Boost

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The recent announcement from Chinese president Xi Jinping to drive the development and growth of Blockchain in China has sparked a massive mobilization across all facets of the industry. Jinping is primarily focused on the base technology, but there has been a spike in cryptocurrency prices, as well as a call to miners.

With this new stance on Blockchain being ratified by the government, there could be a call to the Chinese province of Sichuan, famed for its massive hydroelectric resources. Miners are often attracted to cheaper energy, and with a drive for blockchain advancement, this could be a new hot spot. 

 In fact, Jiang Yang, a former vice-chairman of top regulator China Securities Regulatory Commission, told a town hall meeting in Beijing tasked with steering the strategic development of the province that Sichuan should continue to tap cheap hydropower to support Blockchain and digital currency development.

“Sichuan should study further about how the province’s cheap hydropower resources can attract digital currency-related businesses,” he told the conference. 

Not only will this be a boom for the cryptocurrency miners, but it will also be a good way to make use of the often abundant extra power. Sichuan is a country with a long rainy season, which is of huge benefit to the hydroelectric schemes, but so much so that there is often too much power. 

During the rainy season, Sichuan’s electricity tariffs drop to as low as 2 US cents per kWh, according to a source, much cheaper than the 11 US cents reported in Guangzhou and Beijing. China is already purported to be a leader in the Bitcoin mining ecosystem, with Jiang saying China was responsible for 70 percent of the Bitcoin mined. 

However, since the governmental crackdown a few years back, the country has eased off on its cryptocurrency advancements. That could all change through with the sentiment being that even though the government is still anti-bitcoin, the regulations may soften – especially in relation to mining. 

Additionally, Bitcoin’s decentralized and global nature means that even if there is a crackdown on the digital currency, miners and others in China will still be able to find workarounds. 

“Since President Xi’s comments on blockchain last week, we have seen the volume of bitcoin traded through our platform surge by four times,” said Leon Liu, chief executive of retail cryptocurrency trading platform Bitkan, whose platform is linked with several cryptocurrency exchanges outside China.

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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