China, though not very friendly towards cryptocurrencies, is becoming the biggest source of market for cryptocurrency trades.
Roger Ver, CEO of Bitcoin.com and strong proponent of Bitcoin Cash (BCH) says China has taken the lead in peer-to-peer BCH trading on P2P platform LocalBitcoins.
A chart of trade volume on the platform by currency, posted by Ver on Twitter shows the Chinese Yuan is leading with a very steep slope.
This is followed by the Euro which is also rising significantly but still way below the Yuan and the third being the U.S Dollar (USD).
The chart which covered volume between June 2019 and December 2019 shows that other currencies way below the top three are not being used significantly to buy and sell BCH on LocalBitcoins.
Not only BCH
BCH is just one of the digital currencies that are highly traded using the Chinese Yuan.
Chinese regulation against Bitcoin has also led citizens who are clearly interested in cryptocurrency to patronise Tether (USDT).
This is because they are not allowed to buy Bitcoin directly with the Yuan and so rely on USDT which they are free to buy before they buy Bitcoin.
In 2018 and 2019, data from Chainalysis revealed that China is responsible for over 50% of USDT trade volume globally.
The volume grew significantly in 2019 from 2018 and is expected to rise even further by the end of the year.
As for BCH, decentralized trading platforms like LocalBitcoins may allow for direct purchase with the Chinese Yuan. This explains the growing volume for the currency.
It is also likely to be the case for Bitcoin and other top cryptocurrencies as such peer-to-peer trades may not be easily stopped unlike buying cryptocurrencies from exchanges.
China becoming a huge market for crypto
China has clearly demonstrated its dislike for cryptocurrencies especially Bitcoin, although they are leading in blockchain innovation globally.
Chinese citizens however have shown that they are on the opposite side, as they have shown tremendous interest in cryptocurrencies despite the regulations that forbid trade in cryptocurrencies.
If the current trends continue, China with its population of close to 2 billion people will be a major hub for cryptocurrency trading globally.
This means that the Chinese Yuan may soon become the number one currency that trades in cryptocurrencies, not the U.S Dollar, which seems to be dominant in exchange of cryptocurrencies as of now.
China is currently leading in technology including the financial aspect.
The country is preparing to launch a national digital currency that experts believe will give it an advantage in trade over its trade rival, the U.S.
With the Yuan also dominating in crypto trade, is China about to take over in digital currency trade too?