China Selects Cryptocurrency as A Response to U.S.'s Attacks

The Chinese government's state-run news agency Xinhua News Agency pointed out that Bitcoin is absorbing funds as a "dodging asset" of investors amid slowing global economy. While China has banned Cryptocurrency and Bitcoin, the latest report by the state-run news agency is drawing attention whether this may be a new opportunity for cryptocurrency in China.

In contrast to China's reluctance to mention issues regarding cryptocurrency, the latest Xinhua news agency reported that tokens such as bitcoin are preferred to investors as so-called fugitive assets since investors have been jittery over trade frictions such as slowing growth in the global economy and the U.S.S.-China trade war since the start of 1919.

In addition, another reason why existing institutional investors and large investors are interested in cryptocurrencies is because of the token Libra, which was announced by Facebook on Wednesday.

Xinhua, on the other hand, continues its vigilance, citing the high fraudulent and speculative nature of bitcoin. However, this is the first time that state media has recognized the potential power of bitcoin in China, since its ban of virtual currency transactions, including bitcoin and ICO.

One of the biggest reasons seems to be the anxiety of the Chinese yuan caused by the U.S.-China trade war. On Wednesday, just one day before the G20 discussion, U.S. President Trump said he would impose additional tariffs if no progress is made in negotiations with his Chinese counterparts. Moreover, the threat of three major Chinese banks blocking access to the U.S. financial system in violation of U.N. sanctions against North Korea is a huge blow to the bank, like the death penalty.

Attention is drawn to how future changes in the Chinese government's cryptocurrency will affect such complex situation.

Reporter Shinwon Kim (news@dailycoinews.com)의 기사 더 보기

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