According to the Bloomberg report, China’s Inner Mongolia has banned cryptocurrency mining and declared its intention of shutting all such projects by April, spurring fears the world’s No. 2 economies will take more steps this year to eradicate the power-hungry practice. Chinese region Inner Mongolia is known for providing cheap energy that attracts crypto miners from around the world.
Inner Mongolia plans to ban all crypto mining activities.
The autonomous region, Inner Mongolia, a favorite among the industry because of its cheap power, also banned new digital coin projects, according to a draft plan posted on the Inner Mongolia Development and Reform Commission’s website on February 25. The aim is to constrain growth in energy consumption to about 1.9% in 2021. According to the draft plan, the region now aims to cut emissions per unit of gross domestic product by 3% this year and control incremental growth of energy consumption at about 5 million tons of standard coal.
Bitcoin extends its gains as the price hovers above $48,000.
The leading cryptocurrency bitcoin extended gains on Monday amid reports of the move, increasing as much as 5.1% in the session. At the time of writing, bitcoin is changing hands at just above $48,000. Bitcoin has witnessed a massive winning rally this year as the price reached as high as $58,000 for the first time in history. The boost in the price of the leading cryptocurrency was due to increased interest by institutions. As reported earlier, Tesla purchased $1.5 billion worth of bitcoin in mid-January and has reportedly already made $1 billion with its investment.