The Beijing authorities have been inspecting cryptocurrency mining data centers to assess and understand their energy consumption, thereby assessing its impact on the power infrastructure. Although the international media reported this to be a rumor, the Chinese official media confirmed it.
Authorities sent “emergency statements” to the three major telecom operators
As Reuters first reported, the Beijing Municipal Bureau of Economy and Information Technology is the entity that ordered the inspection of the Beijing data center.
First, they want to verify whether these companies are involved in Bitcoin (BTC) and other cryptocurrency mining operations by sending an “urgent notice about data centers involving Bitcoin and other cryptocurrency mining operations in our city’s data centers.”
According to Reuters, citing an unnamed source, the notice also targeted China’s three major telecom operators.
The measure was carried out on Tuesday, and the official media Peng Pai confirmed the news on Thursday. In addition, the bureau hopes to obtain reports on the amount of electricity consumed and shared through crypto-asset mining.
Although the information indicates that the notice was issued in Beijing, there is no official confirmation whether inspections have been conducted nationwide.
Is China’s carbon neutral position one of the reasons behind the inspection?
Again, there are no more details about the reasons that drove the Beijing authorities to conduct such inspections.
However, Reuters hinted that the measure may have been implemented after the recent shutdown of digital currency mining projects in the Inner Mongolia region of China, where the country is seeking to improve energy efficiency.
In addition, as Bitcoin.com recently reported, China’s carbon neutral stance has increased the support of Bitcoin miners. Following the recent drop in hash rate in Xinjiang Province, a regional report pointed out that the cost of electricity for people who use electricity in Sichuan may increase.
In fact, a local financial columnist said that Sichuan will be powered by carbon materials this year and will increase its electricity by 150%, which will increase the demand for renewable hydropower.
What is your opinion on the measures taken by the Beijing government? Let us know in the comments section below.
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