Chinese cryptocurrency coins appear to be preparing for another significant rally as a result of China taking positive steps to promote a quicker recovery in the country's economy.
Despite its complete ban on digital assets in late 2021, China hasn't been very friendly to cryptocurrencies. Nonetheless, several Chinese cryptocurrency coins saw a huge uptick in value back in February of this year. Although the nation's central bank is presently advocating for a speedier recovery from the pandemic-caused depression, it's possible that a similar surge may materialize in the upcoming days.
Central Bank Advances Recovery Initiatives
For the first time this year, the People's Bank of China (PBOC) said on Friday that it will lower the amount of money that banks must keep in reserves, also referred to as the bank's reserve ratio. This action is being taken to promote a developing economic recovery and help maintain adequate liquidity.
The reserve requirement ratio (RRR) for all banks will be decreased by 25 basis points (bps) starting on March 27. This was announced by the central bank. However, banks that have previously implemented a reserve ratio of 5% are exempt from this reduction.
China's Adapting Position on Crypto
Despite the unproven assumption that China opposes crypto, subsequent events have shown that this is untrue. Officials from China's Liaison Office seem to be curious about how Hong Kong is doing with cryptocurrencies. As per reports, these officials are researching the nation's policy regarding digital assets, which many people think is a net plus for the sector.
Governments are not the only ones experimenting with Web3 technology and the use of cryptocurrency; private businesses are also doing so on the Chinese mainland. For instance, China Telecom has been working with significant cryptocurrency companies to create SIM cards based on blockchain technology.
All of these factors are coming together to help create a good perception of the cryptos that are associated with the "China narrative," in addition to the proactive steps the central bank has done to facilitate a quicker recovery.
Chinese Crypto Currencies To Rise
Some popular Chinese cryptocurrencies have already had huge price increases in recent months, with Conflux seeing a surge of around 124% over the previous week.
As the China narrative acquires more traction in the coming days, NEO, another well-known Layer-1 blockchain in China, might see modest gains. NEO's price increased significantly today; it is now trading close to the $12 mark with a market valuation of about $844 million.
Other notable Chinese crypto coins with the potential to increase in value in the near future include VeChain, Polkadot, IOST, and Filecoin. The price of Bitcoin has already surged beyond the coveted $26,000 barrier, adding further positive impetus to the rise and fostering bullish enthusiasm for the entire crypto industry.