China potentially changes stance on Bitcoin, calls it a “Safe Haven Asset”

A report from Xinhua News Agency, China’s state-run press agency, stated that Bitcoin is a “Safe Haven Asset.” This could hint at the government’s changing outlook towards the cryptocurrency. The news states:

“Since the beginning of this year, due to multiple factors such as the escalation of economic and trade disputes and the expected downward adjustment of the global economic growth rate, global capital market volatility has intensified.

Bitcoin has shown the characteristics of safe-haven assets and attracted many investors’ attention. In addition, Facebook’s proposed release of the cryptocurrency Libra has greatly increased the market’s popularity and attracted more investors into the cryptocurrency market.”

Earlier the government had come down hard on initial coin offerings (banning them in 2017), crypto mining and Bitcoin trading. Their change in stance could be a direct result of US President Donald Trump’s continued insistence of burdening the country with a host of new tariffs.

Garrick Hileman, head of research at cryptocurrency services firm Blockchain, said:

“Fears of China’s trade concerns have been driving up demands in China. We’re seeing on-shore premium for Bitcoin in China that’s fueling the price increase there as well.”