Bitcoin Could Grow with New Chinese Policies
Discussions about digital assets like Bitcoin (BTC) are taking place in China, and there is potential for the Chinese government to ease its policies that currently ban cryptocurrency transactions.
China has not said anything about changing its stance on cryptocurrency, which is not allowed to be used within the country in any way that could be considered a replacement for traditional fiat currency, however, Bitcoin and other crypto tokens are allowed in Hong Kong, which China considers to be part of its “one country, two systems” policy.
Bitcoin is currently at $87,000 and rising, having gained 2.50% over the last day. That could change very quickly, though, once Donald Trump unveils his plans for tariffs this month. Over the last 30 days, however, Bitcoin has lost 3.57% of its value, and things are not looking rosy for the top crypto coin. It is far below that important $100K level, but a boost from the Chinese market could certainly help.
Will China Change Its Cryptocurrency Policies?
There is no definite movement from the Chinese government as to a change in policy regarding Bitcoin and the wider crypto niche. However, they may take a page from Trump’s playbook and establish a crypto reserve in order to even out the playing field for the market.
Right now, China has a very restrictive when it comes to cryptocurrency, and while that could change as soon as this year, there is not solid evidence that this is happening. China may bend to popular opinion when it comes to cryptocurrency, and if that does happen, then Bitcoin will certify benefit. But investors should expect a far more restricted framework in China for cryptocurrency than what they enjoy in the United States.
Currently Chinese citizens can hold cryptocurrency but may not mine or trade it. The door is already slightly open for crypto to enter into the country in full force in the near future.
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