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Although China is not very welcoming cryptocurrencies Since the decision to completely ban digital assets at the end of 2021, some Chinese cryptocurrencies experienced significant growth as early as February this year. While the country’s central bank is currently pushing for a faster recovery from the pandemic-driven downturn, it’s possible that a similar rally could happen in the coming days.
Central Bank ramps up recovery efforts
The People’s Bank of China (PBOC) announced Friday that it will cut the amount of cash that banks must hold as reserves, also known as the bank’s reserve ratio, for the first time this year. The purpose of this move is to help maintain sufficient liquidity and support the emerging economic recovery.
central bank announced , which will reduce the required reserve ratio (RRR) for all banks by 25 basis points (bp) from March 27. However, this reduction does not apply to banks that have already adopted a required reserve ratio of 5%.
Changing position of China towards cryptocurrencies
Despite the open suggestion that China is taking an anti-crypto stance, recent events suggest otherwise. It appears that officials are interested in Hong Kong’s progress with cryptocurrencies. These officials are reportedly looking into the country’s approach to digital assets, which many people see as positive for the industry.
This trend is not limited to governments; private companies in mainland China are also exploring technology Web3 and use of cryptocurrencies. China Telecom, for example, is partnering with major crypto firms to develop SIM cards based on the technology blockchain.
The culmination of all these reasons, in addition to the constructive measures taken by the central bank to support a faster recovery, helps to create a positive attitude towards cryptocurrencies that fall under the “Chinese narrative”.
Chinese Rally Crypto Coins
Prices for a number of well-known Chinese cryptocurrencies have already risen significantly in recent months, with Conflux up nearly 124% in the last seven days.
NEO, another well-known Chinese Tier 1 blockchain, could see additional gains in the coming days. Today price NEO rose significantly as it is currently trading around the $12 level from market capitalization about $844 million.
VeChain, Polka dotIOST and Filecoin are just some of the other noteworthy Chinese cryptocurrencies that could rise in value in the coming days. And, to add more positive momentum to the rally, bitcoin price has already surpassed the desired $27,000 mark, leading to bullish sentiment on cryptocurrency market generally.
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