While China hasn’t been very welcoming of cryptocurrencies since a general ban on cryptoassets in late 2021, some Chinese coins had a significant rally in February of this year. According to some, the recent signs of the country’s central bank to recover could make the Chinese coins experience a bigger rise. Here are the details…
Important statement from China’s central bank
As we reported on cryptokoin.com, while China’s central bank is currently pushing for a faster recovery from the pandemic-induced collapse, according to some experts, a similar rise is likely to take shape in the coming days. The People’s Bank of China (PBoC) announced on Friday that it will reduce the amount of cash banks must hold as reserves (the reserve ratio) for the first time this year. The purpose of this move is to help maintain adequate liquidity and support an emerging economic recovery.
The central bank announced that it will lower the required reserve ratio (RRR) by 25 basis points (bps) for all banks as of March 27. However, this discount does not apply to banks that have already adopted the 5 percent reserve requirement ratio. Despite the open-ended assumption that China is taking an anti-crypto stance, recent developments have shown otherwise. It seems that officials from the China Liaison Office are interested in Hong Kong’s progress in cryptocurrency. These officials are reportedly examining the country’s approach to cryptoassets, which many believe is a net positive for the industry.
Chinese coins on the rise
However, this trend is not limited to governments; Private companies in mainland China are also exploring Web3 technologies and the use of crypto. For example, China Telecom is collaborating with major crypto companies to develop SIM cards based on Blockchain technology. The culmination of all these reasons, in addition to the constructive measures taken by the central bank to support a faster recovery, helps create a positive attitude towards cryptocurrencies falling under the “Chinese narrative”.
Many popular Chinese cryptocurrencies have come to the fore in recent months as their prices have increased significantly. Conflux, for example, has risen almost 124 percent over the past seven days. NEO, another leading Chinese layer-1 Blockchain, may experience incremental gains in the coming days as the Chinese narrative gains more strength. The price of NEO witnessed a significant increase today as it is currently trading near the $12 level with a market cap of roughly $844 million. VeChain, Polkadot, IOST, and Filecoin are just a few of the other notable Chinese cryptocurrencies that have the potential to appreciate in the coming days.
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