China
5.5% of Chinese people own cryptocurrency
How many cryptocurrency owners are there in China?
It is estimated that over 78 million people, 5.5% of China’s total population, currently own cryptocurrency.(¹)
Cryptocurrencies Market Sentiment in China
While the Chinese government has been cautious about cryptocurrencies and has implemented strict regulations on cryptocurrencies-related activities, it has recognized the potential of blockchain technology.
It has been actively exploring its use in various industries. China has the most blockchain patent applications of any country, accounting for 84 percent of the world’s total, signaling Beijing’s continued commitment to the technology despite years of crackdowns and a ban on cryptocurrency. (2) China encourages blockchain development (3), even if it does not like the cryptocurrencies that run on top of them.
China is one of the frontrunners in developing and adopting Central Bank Digital Currencies (CBDCs). The People’s Bank of China has been actively developing its cryptocurrency, known as the digital yuan or e-CNY, and is looking to expand its use among the country's citizens. The partnership between the People’s Bank of China and Tencent-owned WeChat (4), China’s largest messaging app and one of the country’s biggest payment services, is a significant step forward in achieving this goal. With over 1 billion users, the integration of the digital yuan into WeChat could provide a massive boost to the adoption and use of cryptocurrency. This move aims to increase cryptocurrency adoption and reinforce China’s position as a leader in the CBDC space.
Despite the regulatory challenges, the overall sentiment towards cryptocurrencies in China is positive, with many industry experts and investors viewing cryptocurrencies as a valuable addition to the financial ecosystem. The country’s tech-savvy population and the large pool of skilled blockchain developers also make it an attractive market for cryptocurrencies and blockchain-related ventures.
Cryptocurrencies’ rising popularity in China
- China doles out millions in digital yuan in bid to boost adoption: Report – Feb 2023
Millions of dollars' worth of China’s central bank cryptocurrency (CBDC) has been handed out across the country during the Lunar New Year period in a bid to boost its take-up.
- China’s state-backed blockchain company is set to launch its first major international project – May 2022
The company, which has links to the Chinese government, will make the international version of its product open-sourced to allow people to inspect the code and ensure there are no backdoors. BSN’s global product, the Spartan Network, will eventually comprise half a dozen public blockchains that do not use cryptocurrencies.
About the Methodology
Our projections regarding cryptocurrency ownership in China are primarily based on the report “The Chainalysis 2022 Geography of Cryptocurrency Report.” This report ranks countries based on five factors:
- (1) the country's on-chain cryptocurrency value received,
- (2) the country's on-chain retail value received,
- (3) the Peer-to-Peer exchange trade volume
- (4) DeFi Value received, and
- (5) Retail DeFi Value Received.
Given the limited availability of data due to the Chinese government’s crackdown on cryptocurrency activity and trading, our estimations are based on China’s Chainalysis score and findings from relevant reports.
It’s important to note that, due to the challenges posed by restricted data access and the evolving regulatory landscape, our estimations are based on available metrics and correlations to offer insights into China’s cryptocurrency ownership.