Bitcoin may strengthen its status as a hedge against monetary debasement due to China’s plans for $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 more than 10 trillion yuan of debt, worth about $1.4 trillion, as part of a fiscal package that could increase with the potential reelection of Republican Party Presidential candidate Donald Trump, anonymous sources familiar with the matter told Reuters.
If approved, the yuan debt would be raised over the following three years, with the proceeds used to help local governments address debt risks.
