- A senior strategist at FXCoin, believes that the depreciation of the Yuan could have an impact on crypto leading more traders to cryptocurrency in 2020.
- Yasuo Matsuda said that bitcoin would more than likely be popular amongst the Chinese people due to the economic sanctions that they face.
A senior strategist at the Japanese crypto company FXCoin, believes that the depreciation of the Chinese Yuan could have an impact on the crypto space leading more traders to the leading cryptocurrency in 2020.
Speaking to Cointelegraph Japan, Yasuo Matsuda said that bitcoin would more than likely be popular amongst the Chinese people due to the economic sanctions that they face. These are brought on due to new national security laws as a part of the government‘s response to the COVID-19 pandemic that has been spreading throughout the world at an alarming rate.
The strategist further said that people in China would be frustrated with the recession of the domestic economy and are looking for a way to get out of it. Matsuda further said:
China’s strong position on legislation like the enactment of the Hong Kong national security law has been conspicuous, but the impact of the coronavirus 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.
The strategist pointed out that the two currencies are not always correlated in the same way. He further adds though that a depreciation of the Yuan currency could see traders in China to buy more bitcoin throughout this year.
...when the yuan goes down, it incentivizes residents in China to move their assets overseas because their values decline in dollar terms. This causes further depreciation of the yuan. However, as the Chinese regulation of capital flight is very strict, some see Bitcoin as the way to go. That is why BTC functions as a flight-to-safety asset.