Chinese e-commerce company Alibaba recently launched “P2P Nodes”, a cryptocurrency mining platform where Alibaba loans out space within its cloud platform to allow clients to mine cryptocurrency. P2P Nodes was registered in Nanjing, Jiangsu province on October 10. This virtual currency mining platform is set to create a partnership with electricity suppliers. Alibaba clarifies that its most recent venture is not a cryptocurrency. Though corporations in other parts of the world have similarly ventured into cryptocurrency mining, Alibaba’s current undertaking – being that the company is located in China – is particularly of note considering that digital currencies in that country are perceived unfavorably.
China has been consistent in its efforts to crush digital currencies in order to clamp down on illegal activity as well as money laundering. Most recently, China’s biggest cryptocurrency mining pool, ViaBTC, was closed due to regulatory issues. The country also implements strict regulations aimed to eradicate any residual traces of centralized crypto-to-fiat trading. The government of China has continually minimized Crypto-mining by restricting electricity use, applying new taxes, and placing land use limitations. Recent reports also point to the government exerting additional effort to block access to domestic and international crypto trading platforms.
Alibaba’s Jack Ma has been skeptical of digital currencies. The Alibaba leader has expressed his confusion of its system. “I said honestly, I know very little about it, and I’m totally confused.” According to Jack Ma, “Even if it works, the whole international rules on trade and financing are going to be completely changed.” However, Ma’s skepticism did not stop him from praising blockchain technology and allowing his company to harness it as a tool. So far, Alibaba has yet to provide details of its plans for P2P. There are also no indications that it will launch its very own digital currency.