Bitcoin may strengthen its status as a hedge against monetary debasement due to China’s plans for over $1.4 trillion in new debt, raising interest among traders.
Bitcoin’s status as a hedge against monetary debasement could be bolstered by China’s growing national debt.
China is considering the approval of a fresh wave of debt of over 10 trillion yuan, worth approximately $1.4 trillion, as part of a fiscal package that could grow with the potential reelection of Republican Party Presidential candidate Donald Trump, anonymous sources familiar with the matter told Reuters.
If approved, the $1.4 trillion worth of yuan debt would be raised in the following three years, with the proceeds used to help local governments address debt risks.
