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That the fall in yuan prices could lead to more people becoming interested in Bitcoin

June 1, 2020

The leading strategist of the Japanese crypto company FXCoin believes that A devaluation of the Chinese yuan could lead to more Bitcoin traders in 2020.

FXCoin’s Yasuo Matsuda spoke to Cointelegraph Japan and said so Bitcoin (BTC) would likely be more popular with Chinese citizens facing economic sanctions as part of the government’s response to the pandemic due to national security laws. COVID-19.

The strategist said that People in China would be “frustrated with the recession in the economy” and would try to escape::

China’s strong stance on laws such as the Hong Kong National Security Law was striking, but the effects of the corona virus have caused the domestic economy to slide into recession. The incentive to move assets abroad is high, and if legislation leads to US economic sanctions, BTC should be even more popular.

That the fall in yuan prices could lead to more people becoming interested in BitcoinThat the fall in yuan prices could lead to more people becoming interested in Bitcoin

Matsuda noted that Yuan and BTC do not always correlate in the same direction. However, She hopes that a devaluation of the yuan could cause Chinese traders to buy more Bitcoin in 2020.

… when the yuan falls, Chinese residents are encouraged to move their wealth abroad because their values ​​are falling in dollars. This leads to a further devaluation of the yuan. However, since China’s regulation of capital flight is very strict, some see Bitcoin as the right way. For this reason, BTC works as a leak for safety.

The value of the yuan fell during the trade war between the United States and China in 2019;; it started in May until it reached a minimum in September. Although it recovered slightly in January, the yuan was It has its lowest value of -0.1404 USD- in 2020, a price approximately the same as in 2008.

Hisashi Oki from Cointelegraph Japan contributed to the writing of this article.

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