The Chinese Yuan, one of the most important currencies around the world, accounts for less than 1% of the total Bitcoin trading volume. This situation is related to the ban imposed in the market the last year. During peak times, it reached 90% of the trading volume.
Chinese Yuan in the Crypto Market
The time where the Chinese Yuan was the most traded fiat currency against Bitcoin has completely faded. In order to control and regulate the market, the Chinese government has been cracking down hard on cryptocurrency exchanges, companies and traders. And this can be seen in the collapse of the share of the Yuan on the total bitcoin trading volume.
Zhang Yifeng, blockchain analyst at Zhongchao Credit Card Industry Development Company, commented:
“The timely moves by regulators effectively fended off the impact of sharp ups and downs in virtual currency prices and led the global regulatory trend.”
And yes, the ban had the desired effect in the market. The People’s Bank of China said that the country had ensured a zero-risk exit for 88 different virtual currency exchanges. Additionally, 85 left the country since September 2017.
The ban on Initial Coin Offerings has been dictated by the Chinese government since an investigation committee raised concerns on ICOs and how they were disrupting the economic and financial order. In addition to it, they informed that these companies were promoting Ponzi and pyramid schemes.
Blockchain is Another Story
But the situation is different with blockchain related companies. Distributed ledger technology (DLT) has been embraced by different companies in the China and indeed is a global leader in the market. The government and Xi Jinping himself has endorsed this technology.
As Mr. Xi Jinping explained it:
“Since entering the 21st century, global science and technological innovation has entered into an unprecedented period of intensive activity. A new round of scientific and industrial revolution is reconstructing the global innovation map and reshaping the global economic structure.”
Additionally, some comments made by the governor of the People’s Bank of China – the Chinese Central Bank – show that he may have a different opinion about Bitcoin. He called the famous virtual currency ‘inspiring’ or ‘enlightening.’
In the future, the ban may be lifted and new regulations implemented. At the moment of writing, the most traded national currencies against bitcoin are the following:
- Japanese Yen (JPY) with 76.7% of the total trading volume
- US Dollars (USD) with 17.09% of the total trading volume
- Euro (EUR) with 2.37% of the total trading volume
- Korean Won (KRW) with 1.52% of the total trading volume