Trump’s Trade War May Drive China to Bitcoin
|Nika Baráková|source|5485x
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Trump’s Trade War May Drive China to Bitcoin

According to an analysis of prices over 30 days, the negative correlation between the yuan and bitcoin has dropped to a record low over the last seven days. Chinese investors are buying more bitcoin. Garrick Hileman, research director at Blockchain, said that bitcoin prices on exchanges such as Huobi are higher.



While the Chinese government has previously tried to keep the value of its national currency above 7 CNY to the dollar, last month the yuan managed to slide below that level and drop to its lowest in 10 years. This move reportedly came as a response to U.S. President Donald Trump’s threats in early August to impose a 10 percent tariff on Chinese imports.

 

The report comes at a time when the People’s Bank of China has announced its own Chinese national digital currency. The recently appointed chief of the digital currency division of the People’s Bank of China said that the upcoming digital yuan will have features not offered by Facebook’s Libra.

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