Chinese Yuan Now Contributes to 1% of Global Bitcoin Trade
China’s PBoC has released official statements regarding the national currency and its underwhelming contribution to global Bitcoin trade numbers. Following the national lawmaker interference and cryptocurrency ban, the central bank published an official statement explaining the massive and gradual decline in Chinese Yuan Bitcoin transactions over the month’s following the ban.
Prior to the ban, China dominated in terms of international cryptocurrency transactions. Exchanges within the country were responsible for more than 90 percent of all transactions involving Bitcoin on a global scale. The new reports and numbers currently indicate the massive shift of operational performance following the ban, as the number has taken a plummet past one percent for all accounted transactions.
The new reports display the potent effect of the ban on China’s digital asset industry, as many businesses flock to the West for alternative crypto-solutions to the standing regulations in the way.
China’s PBoC ensured exit strategies for almost one hundred companies prior to the ban’s effect taking place, providing a safe method of liquidating any assets and exiting investments that have still not occurred.
Earlier this year, Chinese regulation officials added further restrictions to the 2017 ban. Several industrial categories were introduced and listed under the ban, including potential market trend-setting innovations and services operating within the jurisdiction. Later on, initial coin offering web pages and cryptocurrency accounts registered abroad were added to the ban list.
China has deemed cryptocurrencies and involved trading platforms as disruptive to the economy, explaining that the unpredictable and uncertain nature of Bitcoin and other currencies is dangerous and places local investors in a financial harm’s way. The central bank continues monitoring blockchain and its industrial uses with plans of introducing the technology into the financial industry under incredibly restricted and regulated policies until further understanding.
The central bank has explained that cryptocurrency and blockchain integration is a natural part of financial and industrial evolution, although the bank is taking the required protective measurements in the unfortunate case of a mishap regarding digital assets.