Photo: iStock
Photo: iStock

Two sources at the People’s Bank of China have quelled the rumor that the central bank held a closed-door meeting in order to shut down bitcoin mining. Instead, the meeting was held to rectify the irregular electricity consumption of some bitcoin mines, Tencent Yixian reported.

Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the blockchain, and also the means through which new bitcoins are released. Anyone with access to the internet and hardware can do the mining.

The biggest cost of bitcoin mining is the power use. Thus, a large number of bitcoin mines have set up in Inner Mongolia and Sichuan province, which benefit from a constant oversupply of power.

A bitcoin mine owner in Sichuan said the local government is investing, requiring them to do business registration and regulating the use of power.

Experts say China is one of the world’s biggest sources of bitcoin mining, which could result in a monopoly on its production.