Why Chinese Crypto Coins May Skyrocket In Coming Weeks?

Read full article at Coingape.

Although China hasn’t been much welcoming to cryptocurrencies since its ruling of a blanket ban on digital assets back in late 2021, certain Chinese crypto coins experienced a significant rally back in February of this year. While the country’s central bank is currently pushing for a quicker recovery from the pandemic-induced slump, it’s possible that a similar rally might take shape in the coming days.

Central Bank Pushes Recovery Efforts

The People’s Bank of China (PBOC) announced on Friday that it would reduce the amount of cash that banks are required to hold as reserves — also known as the bank’s reserve ratio — for the first time this year. The purpose of this move is to assist in maintaining sufficient liquidity and to support an emerging economic recovery.

Read More: Why Is Bitcoin Price Going Up?

The central bank announced that it would reduce the reserve requirement ratio (RRR) for all banks by 25 basis points (bps) beginning on March 27. However, this reduction does not apply to banks that have already adopted a reserve ratio of 5%.

China’s Changing Stance For Crypto

Despite the open-ended presumption that China has an anti-crypto stance, recent developments have indicated to be otherwise. It appears that officials from China’s Liaison Office are interested in Hong Kong’s progress with cryptocurrency. These officials are reportedly studying the country’s approach towards digital assets, which many people believe to be a net positive for the industry.

However, this trend is not confined to just governments; private companies on the Chinese mainland are also investigating Web3 technologies and the use of crypto. China Telecom, for instance, has been collaborating with major crypto firms to develop SIM cards that are based on blockchain technology.

The culmination of all of these reasons, in addition to the constructive measures taken by the central bank to support a more rapid recovery, is assisting in the development of a positive attitude regarding the cryptos that fall under the “China narrative”.

Chinese Crypto Coins To Rally

A number of the most well-known Chinese cryptocurrencies have already seen their prices rise significantly in recent months, with Conflux rising by almost 124% over the past seven days.

NEO, another prominent Chinese Layer-1 blockchain, might experience incremental gains in the coming days as the  China narrative becomes more intense. The price of NEO witnessed a significant uptick today, as it currently trades near the $12 level with a market capitalization of roughly $844 million.

VeChain, IOST, Polkadot, and Filecoin are a few of the other famous Chinese crypto coins that have the potential to appreciate in value in days to come. And, to add more positive momentum to the rally, Bitcoin’s price is already on a tear by surpassing the coveted $26,000 mark, which has resulted in a favorable sentiment in the overall crypto market.

Also Read: How To Claim Arbitrum (ARB) Token Airdrop – Eligibility, Date & Process

The post Why Chinese Crypto Coins May Skyrocket In Coming Weeks? appeared first on CoinGape.

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