It seems that the Chinese government, which is normally not positive about Bitcoin, is supporting Hong Kong’s ambition to develop into a crypto hub. That is strange, because Bitcoin is banned on all sides within China. Could it be that this world power has secretly changed its mind and wants to embrace crypto again?
Hong Kong as a test environment
In October of last year, the Hong Kong government talked about the idea of introducing a new crypto law. This would make it possible for retail investors to invest directly in crypto. In principle, this law contrasts with the current laws in China, which prohibit this.
According to some people close to the fire, Beijing government officials are not against the idea of Hong Kong. From one reporting from Bloomberg of February 20, it appears that representatives of the Chinese government regularly travel to Hong Kong to discuss matters.
So far, meetings between Hong Kong and China officials have been positive, according to Bloomberg’s report. Local crypto companies currently seem to see China open to using Hong Kong as a test environment to test crypto.
Very interesting
What makes the situation in Hong Kong and China even more interesting is that the Chinese central bank is currently pursuing a very soft policy. Unlike the Western central banks, the Chinese central bank is currently cutting interest rates to give an extra boost to the economy, which is slowly reopening.
Luke Martin writes in the above tweet that Asia, according to his sources, is currently a buyer in the market for Bitcoin. Given the policy of the Chinese central bank, this is certainly not a strange situation. While sentiment in the West is not positive at the moment, this situation in China can keep things on track and continue the good start to 2023.