(Kitco News) The People’s Bank of China (PBOC) is focused on its efforts to eliminate Bitcoin transactions for financial stability. And now it says that it succeeded.

China’s central bank views virtual currency transactions as a threat to the country’s financial security and capital controls. This comes at a time when China is dealing with a slowing economy and a property crisis.

“As we continue to crack down on domestic transactions and virtual asset hype, the share of Bitcoin trading in China has plunged,” the bank’s Financial Stability Bureau wrote on its official WeChat account this week.

China’s share of global Bitcoin transactions fell to 10% in March. This is a massive drop from the peak of 90% back in 2017, the Bureau said.

The country’s central bank also said it is taking the fight even further by saying that cryptocurrencies and peer-to-peer (P2P) transactions are all threats to the banking industry.

This is all part of an ongoing crypto crackdown by the government. Last year, China banned all cryptocurrency trading and mining. And in April, it was banned from using NFTs (non-fungible tokens) as financial assets. China also banned initial coin offerings (IPOs) five years ago.

Despite these efforts, China is still among the top ten countries in the Global Cryptocurrency Acceptance Index, according to a report by Chainalysis. The report suggested that China’s crypto ban has been either “ineffective” or “loosely enforced.”

“China entered the top ten of our index this year after ranking 13th in 2021,” Chainalysis said in the report released earlier this month. “Our sub-indices show that China is particularly strong in the use of centralized services, placing second overall for purchasing power-adjusted transaction volume at both the aggregate and detail levels. This is particularly interesting given the Chinese government’s crackdown on cryptocurrency activity.”

(Kitco News) The People’s Bank of China (PBOC) is focused on its efforts to eliminate Bitcoin transactions for financial stability. And now it says that it succeeded.

China’s central bank views virtual currency transactions as a threat to the country’s financial security and capital controls. This comes at a time when China is dealing with a slowing economy and a property crisis.

“As we continue to crack down on domestic transactions and virtual asset hype, the share of Bitcoin trading in China has plunged,” the bank’s Financial Stability Bureau wrote on its official WeChat account this week.

China’s share of global Bitcoin transactions fell to 10% in March. This is a massive drop from the peak of 90% back in 2017, the Bureau said.

The country’s central bank also said it is taking the fight even further by saying that cryptocurrencies and peer-to-peer (P2P) transactions are all threats to the banking industry.

This is all part of an ongoing crypto crackdown by the government. Last year, China banned all cryptocurrency trading and mining. And in April, it was banned from using NFTs (non-fungible tokens) as financial assets. China also banned initial coin offerings (IPOs) five years ago.

Despite these efforts, China is still among the top ten countries in the Global Cryptocurrency Acceptance Index, according to a report by Chainalysis. The report suggested that China’s crypto ban has been either “ineffective” or “loosely enforced.”

“China entered the top ten of our index this year after ranking 13th in 2021,” Chainalysis said in the report released earlier this month. “Our sub-indices show that China is particularly strong in the use of centralized services, placing second overall for purchasing power-adjusted transaction volume at both the aggregate and detail levels. This is particularly interesting given the Chinese government’s crackdown on cryptocurrency activity.”