How does the inclusion of yuan in the basket of currencies affect the value of cryptocurrencies?

3 answers

• Dec 15, 2021 · 3 years ago
  The inclusion of the yuan in the basket of currencies can have a significant impact on the value of cryptocurrencies. As the yuan is one of the world's major currencies, its inclusion in the basket increases its importance and can lead to increased demand for yuan-denominated assets. This increased demand can spill over into the cryptocurrency market, as investors seek alternative assets to diversify their portfolios. Consequently, the value of cryptocurrencies may rise as more investors allocate funds to them.
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• Dec 15, 2021 · 3 years ago
  When the yuan is included in the basket of currencies, it signifies its recognition as a global reserve currency. This recognition can boost investor confidence in the yuan and increase its attractiveness as an investment option. As a result, more investors may choose to hold yuan-denominated assets, including cryptocurrencies. This increased demand can drive up the value of cryptocurrencies, as they become a part of the broader currency landscape.
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• Dec 15, 2021 · 3 years ago
  The inclusion of the yuan in the basket of currencies is a positive development for cryptocurrencies. It signifies the growing acceptance and integration of cryptocurrencies into the global financial system. As more traditional currencies, like the yuan, are included in the basket, it legitimizes cryptocurrencies as a viable investment option. This can attract more institutional investors and increase liquidity in the cryptocurrency market, ultimately leading to a positive impact on their value. At BYDFi, we believe that this inclusion will further strengthen the position of cryptocurrencies as an alternative asset class.
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