Jeremy Allaire, chief executive of Circle, a provider of encrypted payment services, confirms that the turbulence of the global economy is partly responsible for the recent rise in Bitcoin (BTC).
Allaire made the corresponding remarks on August 5 in an interview with CNBC.
The CEO of Circle sees Bitcoin as a haven for investors in times of uncertain global politics and the global economy. He underlines this thesis in reference to the current rise of the crypto-currency, leader of the market, which does not coincide coincidentally with a record devaluation of the Chinese yuan. To conclude, Allaire declares:
"There is a clear link with that, and it is increasingly clear that crypto-currencies, particularly bitcoins, are influenced by global economic events: growing nationalism, currency conflicts, trade disputes, all these factors play in the hands of an independent and secure stock of value [Bitcoin]".
Is China easing its attitude towards cryptocurrencies?
In this context, the moderator of CNBC is hanging on and wanted to know if the increase in Bitcoin had been triggered by the actual influx of Chinese capital or if speculators were anticipating that this influx. A legitimate objection because Bitcoin is difficult to access in China.
However, Allaire responded that despite the restrictive legislation, China was a major player in the cryptography markets, with its cryptographic transactions largely being carried out by offshore companies in mainland China. Likewise, Circle's CEO says that Beijing is loosening more and more its rejection of cryptocurrency.
As an example, he notes that the Chinese central bank recently released an infographic on Bitcoin on its official website, which has been viewed by the crypto community as an important step toward acceptance in the Middle Empire. In addition, a Chinese court recently recognized Bitcoin as a property, which is also a positive sign of its legal status.
In conclusion, Allaire pointed out that Huobi's cryptography system had set up a separate section for the Communist Party, a mandatory procedure for the country's big corporations. Nevertheless, it can be seen that the complications of the cryptography industry and the central government are getting closer and closer.
Last April, Allaire had pointed out at a conference that crypto and blockchain were more than alternative means of payment, but that they could potentially completely redefine social coexistence.