The Banking Executive Magazine - January 2022 Issue

escalating its ongoing clampdown on bitcoin and other digital coins to roll out the digital yuan. Chinese reg- ulators strictly prohibits exchanging cryptocurrency for legal tender, pro- viding information or pricing serv- ices, and trading . The statement, signed by multiple authorities including the People's Bank of China, the Cyberspace Ad- ministration of China and the Supreme People's Court said virtual currencies had disrupted the eco- nomic and financial order and bred money laundering, illegal fundrais- ing and fraud. Virtual currencies do not have the same legal status as legal tender, and may not be circu- lated in markets as currency. The move to ban all virtual curren- cies except central bank digital cur- rency will strengthen the digital yuan. China ordered five state-run banks including Industrial and Com- mercial Bank of China, Agricultural Bank of China, as well as mobile payments giant Alipay, to cut off cryptocurrency transactions. It also imposed a broad ban on virtual- cur- rency mining driving many miners overseas and slashing the country's share of digital coin creation, once above 80%. China authorities announced even tougher mining restrictions, barring new operations and accelerating exits from existing projects. Supply- ing electricity to miners is prohibited, and such projects cannot receive fi- the BANKING EXECUTIVE 12 ISSUE 157 JANUARY 2022