Hong Kong continues to be in the news for a long time due to various protests going on over the country because of China. Now the news which is coming from several parts of Hong Kong is that there is an acute shortage of liquid currency in the ATM and there is a long queue in front of ATMs. There are also reports that the ATM is completely running out of cash in several parts of the country. Hong Kong residents are reporting that HSBC ATMs (in particular) are running out of cash.
Keeping in view this recent situation there is a record increase in the Bitcoin (a form of digital currency) trading volume and it is reported to be at its highest level in the country ever since its transactions are started in the country. These trends are seen when there is a huge demand in a short span of time and this is only because the digital transactions of the Hong Kong residents are being monitored by the Chinese agencies. Protesters are also saying that it is possible that the Chinese government may be monitoring the digital transactions and it can also freeze the digital transactions in the country to suppress the protest.
Due to the monitoring of transactions by the Chinese government, many protesters of Hong Kong are shifting to liquid cash and even to Cryptocurrency as a result.
There are also reports which say that China may pass an emergency law that could freeze Hong Kong citizen’s assets arbitrary and other rights of the residents may also be at risk.
Due to the uncertainty in Hong Kong’s banking system, many residents of Hong Kong are shifting towards Cryptocurrencies. Around 12 million Hong Kong dollars were traded on local Bitcoins last week which is at its record level in the country.
Since trading volume in Bitcoin is calculated weekly so it is to be seen whether this trend remains to continue or not. According to the inner reports from Hong Kong, the increase in Cryptocurrencies is due to the uncertainty in the Hong Kong banking system which is mainly connected with China. Initially, Hong Kong residents were not interested in Cryptocurrencies but the recent conditions of the country made them transact in Cryptocurrencies.
Hong Kong may also become the first test case in which there is a significant increase in Cryptocurrencies due to uncertainty in the country’s banking system. Since we know that the Hong Kong banking system is connected with China and China may apply limits or freeze the accounts of the residents of Hong Kong.
There are also some allegations that the increase in the number of transactions in the digital currency is due to ‘one pro trader’ who made as many as 30 transactions of high value due to which there is a recent spike in digital currency.
This will become clear next week because the Bitcoin trading volume is calculated weekly and if this recent trend remains continue than it will be clear that whether the increase was due to 30 high-value transactions or due to the shifting of residents towards digital currency.
The chief investment officer at Hayman capital management also reported that there are “bank runs” happening all across the country. He also said that the legal system of Hong Kong is not working properly.