As China’s stand against digital currencies continues to tighten, adoption rates are dropping. It was recently revealed that the trading volumes for Bitcoin in China have seriously plummeted, reaching levels not seen since 2018.
Coin Dance, a website that monitors the Bitcoin network and offers statistics, has revealed information showing that since the last quarter of 2019, Bitcoin trading volumes have consistently reduced. Current levels have now hit a two-year record low.
According to Coin Dance, in the week between January 20th and the 25th, the total amount of Bitcoins traded was worth 4.5 million yuan, which is roughly $648,000. This figure is at least 90% lower than a year-over-year weekly record above 45 million yuan, roughly $6.4 million. The information is based on data from peer-to-peer trading platform, LocalBitcoins.
It’s important to note that this is a very poor figure especially when trading history in China is considered. LocalBitcoins’ current weekly all-time high was in January 2018 at 186.6 million yuan, which is about $24.3 million.
Early last year, there was an increase in demand for Bitcoin in China, making the current development particularly disappointing.
China has been very supportive of blockchain technology, especially since President Xi Jinping called for proper exploration of the technology. Last month, China also revealed that its central bank digital currency (CBDC) is ready and testing will begin soon.
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