In 2021, China made a significant decision that led to a major decline in the cryptocurrency markets by banning crypto mining due to its high energy consumption. The government emphasized the importance of meeting carbon emission targets, although the sincerity of these targets remains questionable. Despite claiming a commitment to reducing carbon emissions by 2050, the country’s actions appear to contradict this narrative.
China and Carbon Emissions
Countries are expected to step away from environmentally harmful energy production methods as part of their commitments to reduce carbon emissions. However, recent data indicates that China’s coal-fired thermal power plant constructions reached near a decade-high level last year. President Xi had stated that carbon emissions would peak before 2030, but they continue to rise at an alarming rate.
Research organizations like the Energy and Clean Air Research Center (Crea) and the Global Energy Monitor (GEM) revealed that while China is expected to add 356 GW of wind and solar energy capacity by 2024, it has also built 94.5 GW of coal-fired thermal plants since 2015. The revival of even suspended projects suggests that China may not be taking its carbon emission commitments seriously.
Why Did China Ban Crypto Mining?
If carbon emissions are not the primary issue, why did China ban cryptocurrency mining? The answer lies in its goal of developing a controlled blockchain economy centered around its digital yuan. While continuing to produce electricity from fossil fuels, China is not fully utilizing its resources for increased energy production, indicating that the ban may primarily support the digital yuan agenda.
Shortly before the ban, Elon Musk, who was trying to overcome legal hurdles to sell more vehicles in China, stated, “Bitcoin 
$91,967 miners harm the world,” laying the groundwork for China’s restrictions. Furthermore, the Bitcoin Mining Council, led by Michael Saylor, has claimed that a significant portion of Bitcoin miners now rely on renewable energy sources.
