Bitcoin aims for demand while Hong Kong protesters announce a bank run

BERLIN, GERMANY – JANUARY 13: In this photo illustration model Bitcoins lies in a hand on January 13, 2014 in Berlin, Germany. (Photo by Thomas Trutschel/Photothek via Getty Images)

Bitcoin hopes to become a fashion property in Hong Kong.

The political crisis in the region has spread to its banking sector, which is now seeing protesters withdraw large cash packages from ATMs.

The measure is the latest tactic to reduce the influence of the People’s Bank of China on the economy of Hong Kong. Protesters have warned that they would withdraw as many Hong Kong dollars (HKG) as they can. They would further exchange their cash holdings for the US dollar as a strategy to protect their assets and show the Chinese government that they have total control.

Cryptocurrency evangelists believe that the disturbing scenario could fuel the demand for bitcoin in Hong Kong. Twitterati’s influential rhythm trader said Wednesday that protesters would eventually want to change their cash into non-sovereign assets such as bitcoin.

There are currently HK $ 70 million outside Chinese banks

The measure is the latest tactic to reduce the influence of the People’s Bank of China on the economy of Hong Kong. Protesters have warned that they would withdraw as many Hong Kong dollars (HKG) as they can. They would further exchange their cash holdings for the US dollar as a strategy to protect their assets and show the Chinese government that they have total control.

The Hong Kong student who launched the “peaceful protest” said protesters have already withdrawn more than HK $ 70 million. Meanwhile, many participants shared or published their retirement receipts on a Telegram channel dedicated to the Hong Kong protests, which already has more than 1,500 members.

“This may work because Carrie Lam and the People’s Republic of China care a lot about the economy,” the student from Hong Kong told Insider, adding that he and others like him would stop if the Chinese government meets their five demands. These are:

    “Withdraw the extradition bill completely; retract the proclamation that the protests were riots; withdraw criminal charges against all protesters; thoroughly investigate the abuse of power by the police; dissolve the Legislative Council by administrative order and immediately implement dual universal suffrage. “

LIHKG, a Chinese version of the Reddit social media platform, saw growing discussions about the proposed execution of the Hong Kong bank. One of the publications, written by an activist, discussed how Hong Kong dollars would remain linked to the US dollar this year. But eventually, a more massive capital outflow would disturb the balance between the two currencies, damaging the HKG.

“If you want to protect yourself, you must first convert most of the assets, to keep the value in US dollars or other reliable foreign currency,” the publication said.

Bitcoin Trading Up

Chinese banks are likely to put their ATMs out of order to bypass protester withdrawal requests. The state could also seize cash by arresting its owner for a typical suspicion of causing disturbances. That has left Hong Kong protesters with some options to protect their police money, this is bitcoin.

According to LocalBitcoins.com, a portion of the money that is already outside the banking system has been allocated to emerging cryptocurrency markets. The peer crypto market saw an increase in the volume of operations from the Hong Kong region. In a few weeks, the volume increased from HK $ 3 million to HK $ 6 million. That sparked rumors that the wealthy of Hong Kong were tunneling their capital offshore using the decentralized Bitcoin asset transfer infrastructure.

The bitcoin trend expects to leak out to ordinary citizens as they participate in bank management. However, there is no evidence that can prove that they will.

Users will always look for the best way to protect their assets, it is very likely that these large amounts of cash will be invested in a cryptocurrency that is not controlled by any government, time will tell if blockchain-bitcoin technology can help investors From Hong Kong. It is expected by new announcements.

Reference: newsbtc.com

Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and / or services. This press release is for informational purposes information does not constitute investment advice or an offer to invest.

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