Bitcoin’s Capital Controls Resistance a Concern says IMF as $1 Trillion Leaves China
Fiat currencies and commodities have been sliding downwards against the US dollar for some time as investors are closely watching China and its floundering economy. With the Shanghai Composite Index in a downward spiral, reports of rumored tighter capital controls in China continue to build. In result, Bitcoin may once again experience a windfall as....
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The price of bitcoin continues to rise, led primarily by the exchanges in China, which have, oftentimes, been trading at a premium of $10/BTC higher than the other major exchanges around the world. With China driving such an increase in the bitcoin price, many have been speculating that it could be driven by capital controls. In China, the law stipulates that individuals cannot send more than the equivalent of $50,000 out of the country in a year. To get around this, individuals have hired smugglers to get cash out of the country, bought extremely expensive real estate in cities like New....
China, a country once believed to be one of the top financial powerhouses in the world, is starting to show its true colors. In recent weeks, the Chinese Yuan has been devaluating at a rapid pace, and many wealthy investors are moving all of their funds out of the country while they still can. But the Chinese government is not sitting by idly, and is....
Amid China’s Bitcoin price reaching all-time highs on BTCC, an industry figure has denounced the currency’s use as a tool against capital controls as useless. In a post earlier today, Bitquant founder Joseph Wang described Bitcoin as “pretty much totally and completely useless for getting money out of China.” Bitquant, a FinTech research laboratory based in Hong Kong, has produced in-depth literature on digital currencies, including a macroeconomic model of Bitcoin. Wang: ‘Nobody interested’ in a Bitcoin capital solution. Despite even mainstream news outlets reporting Chinese investors are....
Bitcoin had an incredible run in 2016, finally breaking $1,000 USD on New Year’s Day 2017. Many people are curious to find out why significant amounts of money found its way into the bitcoin economy over the past year. Two of the biggest reasons that are spurring bitcoin demand worldwide are bitcoin’s censorship resistance and it’s store of value....
China has unveiled new capital control regimes that will restrict and limit overseas investment by Chinese corporations. Similar to China’s crackdown on Wealth Management Products (WMPs) in October, analysts predict that the tightened regulations on overseas investment will increase the demand for Bitcoin. In October, China introduced various regulatory frameworks to control the country’s $13 trillion worth of WMPs. Almost immediately after the announcement from the People’s Bank of China, the price of Bitcoin increased, surging by three percent overnight. This month, the Chinese State....