Chinese Investors Flock to Bitcoin as Yuan Falls, Igniting Fears of Government Action
Chinese investors are buying bitcoin as the yuan continues to fall since bitcoin allows them to store funds outside of China, according to The Wall Street Journal. The activity has renewed fears of government enforcement action against bitcoin, which happened when prices soared in 2013. Bitcoin trading reached 47 million bitcoins last week, the highest-ever level based on data since 2011. China Dominates Bitcoin Buying. China, the world’s second-largest economy, commands most of the bitcoin buying activity, with trading on three Chinese bitcoin exchanges accounting for 98% of global volume....
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Unfortunately, the Chinese government is working on countermeasures. The current plan is to curb capital outflows, and they are paying close attention to the bullion market right now. It is evident the Chinese Yuan is not in a good place right now. Chinese investors are willing to exchange their Yuan for other assets, even if they have to pay a premium price to do so. Physical gold is of particular interest to them right now, despite the government looking to curb capital outflows. One could say Chinese investors find themselves in a gold-crazed scenario right now, and demand is surging at....
After years of rumors and leaks on Chinese social media, Shenzhen residents became the first in the country to trial the digital yuan. Distribution of funds took place via a lottery-style promotion with 50,000 “red packets,” each worth 200 yuan ($30), up for grabs. Chinese citizens living in Shenzhen registered their interest via the local […]
Yuan increased by almost 1% against the dollar last night as overnight borrowing costs in Hong Kong rose to 96%, according to Reuters, surprising observers and sending bears for cover. Around the same time, after surpassing gold parity and reaching an all-time high of nearly $1,300, bitcoin flash crashed in a sell off run to $990. Price Falls by $300 as Yuan Strengthens. Although there is no confirmation of a direct intervention by the Chinese government itself, there were reports they may order their state-owned companies to sell their foreign reserves to halt Yuan’s 7% decline. Moreover,....
China’s economic problems may only just be starting, and bitcoin is poised to benefit more than ever before. On top of the ongoing currency devaluations, bubbles are popping in many different industry segments across China, including stock and property markets. As a result, investors are eyeing bitcoin as an alternative. Chinese Investors Moving into....
But there is more, as financial institutions will have to report international transfers exceeding 200,00 yuan. China has been imposing various degrees of curbing capital outflow throughout 2016. Not all of these attempts have been successful, but the government has come up with a new plan. Foreign currency purchases will be restricted even further moving forward. In doing so, the government aims to reduce the amount of money leaving the Chinese economy. Converting Yuan to foreign currency will become more difficult for everyone living in China. Additional information needs to be provided....