Bitcoin anticipates market growth as White House National Security Advisor Robert O’Brien threatens China with economic sanctions over Hong Kong national security law.
The warning could lead the People’s Bank of China to devalue yuan that, according to Naeem Aslam of AvaTrade, could prove disastrous for all currencies.
Bitcoin and Gold could attract more buyers amid the distressing geopolitical crisis.
Bitcoin once shared a near-perfect negative correlation with the Chinese Yuan. As the national currency fell, the cryptocurrency popped higher.
The starkly different assets established proximity in mid-2019 at the heights of the U.S.-China trade war. Bloomberg reported that investors used Bitcoin as a hedge against yuan’s intentional devaluation by the People’s Bank of China. Demand for the cryptocurrency was so high that people were willingly paying a $300 premium for it.
Correlation between Bitcoin and yuan in mid-2019 | Source: Bloomberg
Now, a year later, Bitcoin is anticipating a similar market growth as the U.S. and China engage themselves in a new form of “cold war.”
U.S. Sanctions on China
Bitcoin’s bullish bias improved as White House National Security Advisor Robert O’Brien threatened to impose sanctions on China in retaliation to their proposed Hong Kong national security law.
“It looks like with this national security law they’re going to basically take over Hong Kong and if they do … Secretary [of State Mike] Pompeo will likely be unable to certify that Hong Kong maintains a high degree of autonomy.
“And if that happens there will be sanctions that will be imposed on Hong Kong and China,” O’Brien told NBC.
Sanction-hit countries have witnessed higher demand for Bitcoin in the last five years. The tech-savvy people of Venezuela, for instance, resorted to the cryptocurrency as their bet against criminally higher inflation. In Iran, citizens started using Bitcoin to circumvent the ban on international banking, and as a measure to protect their savings against a falling Rial.
Meanwhile, a 2019 survey conducted by analytics firm Gate Trade found that 25 percent of Iranians earned $500 to $3,000 a month from their bitcoin-related businesses.
Bitcoin against Currency War
If the U.S. goes ahead with its plans to impose economic sanctions against China, then it could lead PBOC to devalue yuan. Naeem Aslam, the chief markets analyst at Avatrade, told BI that he sees a weaker yuan creating a ripple effect across all the emerging market currencies.
“There could be a currency war with every central bank looking to devalue its currency,” the analyst said. “With another US-China trade war, renminbi will weaken considerably and the exchange rate will be around 7 yuan per US dollar.”
The distressing geopolitical scenario could lead to more and more retail investors to the safety of Bitcoin – even Gold that behaves as a hedge against currency-led inflations. The cryptocurrency is already up by more than 120 percent from its mid-March lows. origin »
China’s central bank governor gave an update on the national currency being developed this week Anonymity and privacy will be protected, he argues Our Analyst Dan Ashmore is not so sure, believing these digital currencies are potentially very dystopian Having said that, there are advantages to the nascent concept, too But with China leading the […]
The post China’s national cryptocurrency is getting more ominous appeared first on CoinJournal.
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The plan to include cryptocurrency mining in China into a list of industries that would be banned in the country has reportedly been scrapped. Earlier this year, the National Development and Reform Commission (NDRC) in China revealed it was considering putting crypto mining on a list of banned industrial activities, which would have effectively phased […]
The post China reverses decision to ban crypto mining in 2020 appeared first on CryptoSlate.
The National Development and Reform Commission of China appears to had a change of heart on cryptocurrency mining. In the 2019 version of the Industrial Structure Adjustment Guidance Catalogue, cryptocurrency mining is no longer considered an industry that needs to be eliminated.
Агентство экономического планирования при Государственном совете Китая Национальная комиссия по развитию и реформам (NDRC) представило финальный вариант каталога «руководящих принципов реструктуризации промышленности».
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According to Golden Finance, China's National Development and Reform Commission [NDRC] removed cryptocurrency mining aka virtual currency mining from its Industrial Structure Adjustment Guidance CatalThe post China's NDRC list removes cryptocurrency mining from phase-out category appeared first on AMBCrypto.
Earlier this year, reports arose that China — once one of the cryptocurrency capitals of the world — was looking to ban Bitcoin mining. As reported by NewsBTC at the time, the SCMP reported that the National Development and Reform Commission (NDRC) has revealed a draft list of industrial activities the government is interested in.
China may have the early mover’s advantage in the race to launch the first national digital currency, but it seems other major global players are in no mood to be left far behind. The Association of German Banks (Bankenverband) released a paper yesterday explicitly stating that the Eurozone economy will benefit from a ‘programmable digital […]
The post 200+ German Banks Unite to Propose a Pan-Continental Digital Euro appeared first on BeInCrypto.
Following China’s recent endorsement of blockchain technology, members of the nation’s Communications Industry Association have proposed a national day of celebration for the innovation.
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The post China’s DCEP to Be World’s First National Digital Currency, Says CCIE Vice Chairman appeared first on BeInCrypto.
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On October 26, the Standing Committee of the 13th National People’s Congress in China revealed that a new cryptography law will go into effect January 1, 2020, according to local news outlet Xinhuanet. The announcement...
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China Merchants Bank International (CMBI) has announced its entry into the blockchain ecosystem by partnering with Nervos, a layered blockchain network. CMBI is a wholly-owned subsidiary of China Merchants Bank, a major Chinese national bank headquartered in Shenzhen.
China Merchants Bank International (CMBI) has announced its entry into the blockchain ecosystem by partnering with Nervos, a layered blockchain network. CMBI is a wholly-owned subsidiary of China Merchants Bank, a major Chinese national bank headquartered in Shenzhen.
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The Chinese Central Bank has refuted claims that it is going to instigate its national digital currency in the coming month (November). This is according to The Global Times, which is China's national English language newspaper.
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Recent events in China indicate the country’s paradigm shift concerning digital currency. The digital yuan (e-CNY) is gradually forming a significant part of the Chinese currency through its rapid development.
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