FXCoin’s senior strategist believes a depreciation in yuan could lure more people into bitcoin.

Senior strategist at FXCoin sees the economic sanctions on Chinese traders amid the pandemic as more likely to drive them to Bitcoin.

FXCoin’s senior strategist Yasuo Matsuda believes that a depreciation of the Chinese yuan may lead more traders to Bitcoin in 2020. In an interview with Cointelegraph Japan, Yasuo Matsuda said that Bitcoin would likely be more popular among Chinese nationals facing economic sanctions due to national security laws as part of the government’s response to the COVID-19 pandemic. The senior strategist said that Chinese citizens would be “frustrated with the recession of the domestic economy” and looking for an escape. 

 

“Bitcoin likely to become more popular if China faces sanctions.”

Yasuo Matsuda believes that the impact of the coronavirus pandemic has caused the domestic economy to fall into a recession. The incentive to move assets abroad is high, and if the legislation leads to economic sanctions from the United States, BTC will likely become even more popular, he added. He also pointed out that the yuan and BTC are not always correlated in the same direction. The strategist expects that a depreciation in the yuan could invite Chinese traders to buy more Bitcoin this year amid the economic recession. 

 

China might accelerate its digital yuan project for post-COVID-19 stimulus. 

The People’s Bank of China is looking to accelerate the rollout of its national digital currency dubbed as DC/EP to counter potential US threats to Chinese financial institutions and the yuan’s international settlement. This move by China’s central bank is being speculated so they could counter potential US threats to its financial institutions and the yuan’s international settlement. The national digital currency would also help to facilitate the implementation and management of large-scale post-COVID-19 stimulus. The pilot test of the national digital currency is being carried out in four Chinese cities. Several from the industry believe that digital yuan could threaten the global dominance of the US dollar. However, the People’s Bank of China has not announced the official date of launching the digital currency to the public. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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