The leading cryptocurrency Bitcoin [BTC] is expected to be boosted by the ongoing political unrest within Hong-Kong as the upper & middle class people are reportedly setting out to move their assets offshore.
Fear Of Extradition Bill
Fears over the still unsolved extradition bill, whose introduction the Hong-Kong govt. has solely suspended but declined to withdraw, is inflicting the ri ches to start moving out their capital from Hong-Kong to offshore.
People are however opposing the proposed bill, that would give authorities the power to deport those suspected of crimes back to mainland China.
Within the protest, the native individuals are staging huge street demonstrations for the past many days, with some extents of violence. These demonstrations have caused a serious alarm, significantly for both the government and business.
Earlier this month, the U.S. State Department’ warned‘ that “these amendments would cause a very serious injury to the Hong Kong’s business industry and subject our citizens residing within or visiting Hong Kong to China’s capricious judicature.”
However, the city is already suffering issues of liquidity, fueled partly by the ongoing China-U.S. trade war. Many presently fear that if this extradition bill is passed, it’ll increase capital outflows, thus additionally reducing liquidity.
As a consequence, the wealthy individuals are now thinking on how to move their wealth’s offshore. In line with a recent report by ‘Reuters’,
“Some Hong-Kong tycoons have started moving their wealth offshore as the concern deepens over the native government thinking to permit extraditions of suspects to face trial in China for the very primary time, in line with monetary advisers, bankers and lawyers acquainted with such transactions.”
Additionally, several middle-class Hongkongers are ‘withdrawing‘ their cash-back from Chinese banks in protest.
On the other hand for many, all these events explain partly Bitcoin’ [BTC] ongoing trajectory towards the $9,000 USD price benchmark.
Major Bitcoin Trading Volumes In Hong-Kong
Hong Kong authorities are presently backing down. However, they’re not completely retreating the bill. Earlier this week, Hong Kong’s Chief Official named ‘Carrie Lam’ proclaimed that she is in favour of suspending the extradition bill and is trying to push through the Hong-Kong’s Legislative Council.
But the mere suspension of the bill doesn’t satisfy protesters at all. Therefore, they’ll moving forward with another ‘huge demonstration‘ on Sunday, i.e 16th June.
Therefore, Lam’s latest move won’t be removing uncertainty from the political and business ecosystem for a protracted time as she has not set a date for the next step forward.
As reported earlier, Hong-Kong is seeing an uptrend in Bitcoin [BTC] trading volume on ‘LocalBitcoins’ exchange.
If this political unrest continues, it’ll possibly additionally encourage the wealthy as well as the middle-class people to secure their assets by moving it elsewhere away from the former British colony.
Hong Kongers, therefore, might already be eyeing the world’s very 1st apolitical and borderless store of wealth, i.e. Bitcoin, to stop the govt. from following their personal information and confiscating their wealth. In fact on the other hand, China is known to pay ‘premiums‘ for ‘cryptocurrencies‘ to not only to trade but also to stay on the top to control the capital.
Also earlier in last year, a Chinese court issued a ruling that there’s no prohibition on holding or transferring Bitcoin’ [BTC] in China.