Bitcoin Demand Skyrockets in China Despite Cryptocurrency Ban

Despite the ongoing cryptocurrency trading ban in China, the year 2024 witnesses a remarkable surge in the demand for Bitcoins among Chinese citizens. According to research firm Chainalysis, residents of the mainland have executed peer-to-peer transactions in digital assets worth a whopping $86.4 billion. This surge has propelled China from its previous ranking at 144th place to an impressive 13th place among countries in terms of transaction volume.

Over the past three years, the Chinese stock market has been dominated by a bearish trend, prompting investors to turn to digital assets as an alternative to traditional securities. Notably, Dylan Ran, the head of a Shanghai-based financial company, has found a way to circumvent the cryptocurrency trading ban. He uses cards issued by smaller commercial banks to purchase Bitcoins from underground dealers in amounts up to 50,000 yuan (approximately $6,235) at a time, all in an effort to avoid drawing unnecessary attention.

Traditional markets in China are experiencing difficulties as Chinese firm stocks and other assets continue to depreciate. Charlie Wong, a stock market analyst who has invested in Bitcoins, commented on the situation, noting the challenging transitional period in the economy.

To reverse the negative market trend, the Chinese government plans to allocate around 2 trillion yuan (approximately $24.9 trillion) to stabilize the stock market. These funds will be used to acquire shares of local institutions, effectively orchestrating an artificial boost in the prices of securities in the hopes of bringing about a brighter future.