Changes In China And Its Impact On The Bitcoin
Last week, the history was seen by the financial sector when a Chinese head of state took the podium for the first time at the Davos conference in Switzerland. The speech of the Xi Jinping issued on 17th January has interpreted as a response to the rise of protectionism and it is an attempt for consolidating the position of China on the world stage.
A Complete Recap
A bigger picture is masked by this view while we have been targeting for the scrutiny of the central bank. First of all, a clear evidence of the position of China in global bitcoin BTC markets can be seen easily. The prices tumble due to the news of meetings between the leading exchanges and the People’s Bank of China.
The dramatic effects are caused by volumes due to the introduction of trading fees and suspension of margin lending. Many fears that the price growth will dampen by the dent in Chinese demand.
This makes sense on the ground. The United State has been the champion of the world for free trade, whereas the China has loosed its position. However, it looks like the table will turn as China is eager to position a modern economy having a flourishing FinTech ecosystem.
A major part of that can be seen in the China’s interest in the blockchain technology. In the past week, the local news sources reported that a blockchain based digital currency is tested by the PBoC and they are looking to establish a research institute. Apart from that, the banks, academia, consortia and banks are working with the international institutions for fostering a bustling blockchain environment.
The approach is one of the dialogues and further investigation as the China is heading towards the weeklong holiday for the Lunar New Year. The things assure that the bitcoin is not a target for the China and they are looking to sum the struggle for becoming an accepted medium of exchange.