Bitcoin Difficulty -11%, Erebor Bank OK’d, China Stablecoin Ban
News
Key developments today: Bitcoin mining difficulty fell by more than 11%, the Office of the Comptroller of the Currency approved a national bank charter for Erebor Bank, and China issued a ban on unapproved yuan-linked stablecoins and tokenized real‑world assets.
Bitcoin mining difficulty declines 11.1% in sharpest single adjustment since China’s 2021 crackdown
The Bitcoin network’s mining difficulty — a measure of how hard it is to add new blocks to the blockchain — dropped by over 11.1% in the last 24 hours, the steepest decrease in one adjustment period since China’s mining ban in 2021.
Mining difficulty stands at 125.86 T, according to CoinWarz. The same data indicates the average block time has decreased to about 9.47 minutes from over 11 minutes.
The Bitcoin network mining difficulty. Source: CoinWarz
CoinWarz projects difficulty will increase again at the next adjustment on February 20, rising to about 132.9 T based on current estimates.
The sharp adjustment followed a broader market sell-off that reduced Bitcoin’s (BTC) price by over 50%, alongside a severe winter storm in the United States that disrupted energy infrastructure and temporarily lowered miner hashrate.
OCC approves national bank charter for crypto-focused Erebor, first new U.S. bank of Trump’s second term: WSJ
The United States granted a national bank charter to Erebor Bank, the first newly created national bank approved during President Donald Trump’s second term, according to the Wall Street Journal.
The Office of the Comptroller of the Currency (OCC) confirmed the approval on Friday, enabling the lender to operate nationwide, the report said, citing people familiar with the matter.
Erebor launches with approximately $635 million in capital and plans to serve startups, venture-backed companies, and high-net-worth clients — a segment viewed as underserved following the 2023 collapse of Silicon Valley Bank.
Backers include Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, and Elad Gil. The institution was founded by Oculus co-creator Palmer Luckey, who will join the board but will not oversee daily operations.
China bans unapproved stablecoins and tokenized real‑world asset issuance
The People’s Bank of China, together with seven other regulators, issued a joint statement prohibiting the unapproved issuance of yuan-pegged stablecoins and tokenized real‑world assets (RWAs) by both domestic and foreign entities.
The announcement states that no organization or individual, whether inside or outside China, may create or issue Renminbi-linked stablecoins without explicit regulatory approval. The restriction covers offshore versions tied to the yuan, closing a potential workaround for crypto-related activity near China’s borders.
The policy also incorporates RWA tokenization into China’s existing risk framework, treating the conversion of real assets into tradable tokens without authorization as potentially illegal financial activity. Regulators said the measure aims to keep speculative digital assets outside the formal financial system while supporting the rollout of the digital yuan (e‑CNY).
China’s central bank digital currency structure. Source: Cointelegraph
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