How did China's 2021 Ethereum & crypto crackdown affect cryptocurrencies?

China's 2021 bitcoin, ethereum and crypto crackdown, which saw it expel crypto companies and so-called miners who maintain blockchain networks, sparked a sudden price crash, wiping billions of dollars from the combined crypto market and sparking panic among traders.

Why did China ban cryptocurrency in 2021?

China's cryptocurrency ban is part of a new trend in Chinese economic policy toward greater state intervention, epitomized in the “common prosperity” campaign. In late September 2021, the People’s Bank of China (PBOC) banned all cryptocurrency transactions.

What is China's Digital Yuan (CBDC)?

The development of China's digital yuan, a so-called central bank digital currency (CBDC) that was partly inspired by bitcoin and crypto, has spurred other countries around the world to explore the development of their own CBDCs, including a digital dollar in the U.S., a digital euro in the E.U. and the U.K.'s digital pound.

How will China's crypto crackdowns affect US investors?

The main repercussion from China’s crypto crackdowns for U.S. investors is that “it could impact market volatility for investors,” says John Wu, president of Ava Labs, a team supporting development of the Avalanche blockchain.