The Yuan Now Accounts for Less than 1% of Bitcoin Transactions
China’s comprehensive ban on cryptocurrency trading has had its desired effect: the yuan renminbi now accounts for less than 1% of global bitcoin transactions.
Yuan Transactions Down
Once the dominant quote currency for bitcoin, the yuan is no longer being used to facilitate fiat-to-crypto trades, according to new data from the People’s Bank of China (PBOC). The central bank disclosed the data Friday through the state-run Xinhua news agency, which showed that the yuan accounts for less than 1% of bitcoin trades from a peak of more than 90%.
Last September, China’s central bank issued a blanket ban on domestic cryptocurrency exchanges and announced a zero-tolerance policy for initial coin offerings (ICOs). Over the past ten months, regulators have also stepped up efforts to limit access to foreign digital currency exchanges.
The PBOC says it has ensured a zero-risk exit for 88 cryptocurrency exchanges and 85 ICO trading platforms, according to Xinhua.
A blockchain analyst by the name of Zhang Yifeng believes that China’s ban had a positive impact on price volatility:
“The timely moves by regulators effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend,” Zhang said, as quoted by Xinhua.