In September 2013, approximately one CNY trade was carried out per three USD trades. At the moment, the situation is quite different, as CNY accounts for more than two thirds of all deals and on most days it outpaces the dollar by a ratio of at least 1:3.
It should be noted that BTC China launched USD and HKD trading accounts last July.
China’s impact on bitcoin
China’s effect on bitcoin prices and the network itself should not be underestimated. The nation is home to some of the biggest bitcoin exchanges on the planet as well as a number of industrial-scale mining operations.
However, China’s love affair with bitcoin comes at a price. Earlier this year the market was affected by a number of regulatory issues, namely rumours that the People’s Bank of China (PBOC) would ban the currency. Although operations were disrupted, the fears subsided in April, but not before the price took a dive in late March.
PBOC’s rumoured actions had a profound effect on domestic exchanges. Most survived and the big three (OKCoin, BTC China and Huobi) thrived, but the turmoil disrupted the balance of power and had a big impact on user trust.
CNY/USD image via Shutterstock
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Original author: Nermin Hajdarbegovic