According to senior strategist of the Japanese cryptocurrency exchange FXCoin Yasuo Matsuda, the weakening of the Chinese national currency can play into the hands of bitcoin.
Matsuda stressed that the US is imposing new sanctions against China, and this may lead to a decline in the yuan. Against this background, citizens of the country, “disappointed with the decline of the domestic economy”, can begin to invest more actively in bitcoin and other cryptocurrencies. The FXCoin strategist stated:
“China has always regulated the economy fairly tightly, but the coronavirus pandemic has led to an economic downturn. Moreover, economic sanctions are imposed by the United States. Now the country’s citizens have an incentive to withdraw assets outside of China, and buying BTC is likely to become even more popular.”
The analyst noted that the yuan and bitcoin do not always correlate, and the influx of Chinese money into the first cryptocurrency can lead to a noticeable increase in the BTC rate.
Recall that China is actively developing a state-owned cryptocurrency-the digital yuan. However, it is still unknown when exactly the People’s Bank of China project will be launched.