China has become a non-factor in the cryptocurrency world. The once leading nation by trading volume now represents less than one percent of the global volume. Using the renminbi to buy or sell Bitcoin is virtually impossible these days.
Renminbi Trading Drops Off
A while ago, China’s central bank introduced new regulations for Bitcoin trading. From that point forward, no firm was allowed to trade with the renminbi (RMB). It was a big blow to the cryptocurrency industry as a whole. At that time, China was the dominant leader in terms of daily trading volume. The situation has changed quite a bit ever since.
According to the People’s Bank of China, renminbi trading represents less than 1% of the world’s total. This shows other fiat currencies remain extremely popular. The ban on RMB trading in China has not caused any lasting impressions on the cryptocurrency industry. Instead, Bitcoin has become a lot stronger and more valuable since that decision.
There are still opportunities to trade Bitcoin for the RMB. This is done through peer-to-peer and OTC trading platforms. Even that option seems to be losing a lot of popularity. China remains a key nation for Bitcoin mining, as that industry isn’t affected by this regulatory change. That situation can still change in the future. China also banned initial coin offerings last year.
New Nations Rise Up
The decline in renminbi trading is not surprising due to China’s ongoing unfriendly stance towards cryptocurrency. Since China’s ban on trading, other countries have propelled themselves to the forefront. Japan is a very promising region in this regard. South Korea also shows a healthy appetite for Bitcoin and other cryptocurrencies.
For Chinese officials, the move to ban renminbi trading is still the right one. There is a genuine feeling of leading the global regulatory trend. A bit odd, considering how this is the only country to officially ban Bitcoin-to-fiat trading prior to India taking a similar approach this month. Most other regions take a far more lenient approach in this regard.
Even without renminbi trading, Bitcoin’s price has not become less volatile. Instead, the price swings have only intensified in frequency and size. Whether or not that is a good thing is subject to interpretation. The RMB volume hasn’t left a void to be filled as Bitcoin’s popularity is not diminishing because of China’s decisions.
What do you think about the incredible decline in RMB trading volume for Bitcoin? Let us know in the comments below.
Images courtesy of Shutterstock.