Historically, the Chinese authorities were opponents of cryptocurrency, banning in 2017 both the work of stock exchanges and the holding of ICOs in the country. At the same time, the possession of cryptocurrencies in China is not prohibited.
As suggested by the publication, the change in the official Beijing’s position on cryptocurrencies may be a consequence of the growing geopolitical tensions in the region and in the world as a whole.
In the Xinhua analytical material states that since the beginning of 2019 there has been an escalation of fiscal and trade disputes and general market volatility, against which the expected downward adjustment in the global economic growth rate has begun.
At the same time, Bitcoin demonstrates all the characteristics of a safe asset and attracted the attention of many investors. Also, interest in the market is growing against the backdrop of the expected launch of Libra digital currency from Facebook.
Earlier in June, an updated report was published by the investment company Grayscale Investments, according to which, during the trade war between the US and China, Bitcoin surpassed the dynamics of traditional financial assets. Grayscale believes that various geopolitical upheavals contribute to strengthening Bitcoin’s position and the asset reacts to such risks even faster than other assets.