• The country had earlier come down hard on initial coin offerings, crypto mining and Bitcoin trading.
  • Their change in stance could be a direct result of Donald Trump’s trade policies.

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.”

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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