The interest in Bitcoin and other cryptocurrencies has grown leaps and bounds across multiple regions. Earlier, Bitcoin was considered a niche market by many, and a majority of its supporters were based in the United States and some European countries. Now the Asian market has caught up with the industries in the west, and China has been one of the biggest proponents for the digital asset sphere.
Just recently, the Bank of China completed the issuance and pricing of 20 billion Yuan, all in small and micro-enterprise loan financial bonds. These funds are targeted to raise the standard of enterprise industries as well as contribute to the already burgeoning Chinese economy. The bonds provided by the national bank will be given at a rate of 3.25 percent with a subscription multiple of 2.7x.
Twenty nineteen has shone the light on China’s push towards Bitcoin, and that has been clear from the statements made by Chinese premier Xi Jinping as well as officials from the central bank. Jinping had stated that China should utilize blockchain technology to create better products and ramp up the economy. This comment had such a massive impact on Bitcoin that its price soared from $7500 to $10,500 in a matter of a few hours.
The biggest highlight of the new move was that the bank would be using its self-developed blockchain bond issuance system. This makes China the first country to use a domestic bookkeeping system based on blockchain tech. Fans and users of the proprietary technology have hailed the country’s venture into space as the leaders themselves have identified the growing demand for blockchain technology.
The latest development by the Bank of China comes after statistics showed a peak in enterprise loans this year. As of September 2019, the bank had a loan balance of 404 billion, which was an increase of 35.36 percent compared to 2018.
The number of customers on the loan front also surged to a whopping 410,000. According to reports, banks are required to hold reserves equal to 20 percent of the value of any debt. Beijing had budgeted the sale of 1.35 trillion yuan in local “special purpose” bonds back in August, which was aimed to fund local projects such as subways, shantytown redevelopment, and sewage disposal plants. Even Wang Jun, the chief economist at Zhongyuan Bank, stated that the Politburo, China’s top decision-making body, is now focussing on infrastructure investment in particular.
The more in-depth look into infrastructure developments comes after a fall in economic growth within the country. The analysis had shown that the country’s growth rate had fallen to 5.7 percent this year, one of the most significant declines since China’s 21st-century economic boom.
Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.