Phillip Gillespie said digital yuan could threaten BTC

Phillip Gillespie of B2C2 Japan spoke with Bloomberg about the possible risks of the cryptocurrency market. In his viewpoint, China’s strategies are mainly hazardous for Bitcoin and other blockchain currencies. The Middle Kingdom wishes to release digital yuan. This can have undesirable effects for BTC.

Phillip Gillespie: This digital yuan is a threat to Bitcoin

The CEO of B2C2 liquidity service provider Japan informed Bloomberg that as quickly as China releases its central bank digital currency (CBDC), the nation might likewise rapidly suppress the cryptocurrency market.

The launch of the digital yuan will be one of the biggest threats to cryptocurrencies,” he said.

Gillespie States Possible New Policy China May Introduce Will Struck” Huge Liquidity” originating from the Chinese market. What constraints are we speaking about? In his viewpoint, it is genuine, for instance, to prohibit Tether (USDT), which might not be utilized on the local cryptocurrency market.

It deserves noting that this is not simply an abstract concept. The conversion of yuan into cryptocurrencies or tokens is currently forbidden in China. Chinese residents, nevertheless, utilize Tether’s dollar-linked stable coin as a tool to prevent this handicap. USDT assists them trade Bitcoin and other digital currencies.

Gillespie thinks that this gate might close quickly. Result? It is simple to picture. A substantial liquidity shock might take place, which will dramatically minimize BTC trading on exchanges.

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