A weekly section discussing how general events can influence the near-term future of cryptocurrency sector
China Imposes New Capital Controls
China is planning to impose new capital control laws in an effort to combat the ongoing economic slowdown. The country’s central bank — the People Bank of China — has earlier deflated Yuan to attract foreign investments into the economy. However, it is not lenient on the outward capital flow and has therefore introduced new conditions on future contracts. The cryptocurrency Bitcoin, meanwhile, is emerging as an attractive solution to Chinese investors.
China Orders Brokerage Firms to Buy Back Shares
In a meeting with the representatives of 50 brokerage firms, the China securities regulator ordered these institution to invest around 100 million Yuan into the bailout fund market and increase the buy back share.
China Starts Witch Hunting Individuals Blamed for Crashing Stock Market
Desperate to find someone to blame for the failure of its program to shore up stock prices, the Chinese government has started a witch hunt in order to find and punish those suspected of “destabilizing the market by manipulation and spreading rumors.”
ECB Strengthens “Quantitative Easing” Program
The president of the European Central Bank in Frankfurt said that the Administrative Council has raised the proportion of bonds that the ECB can buy, from 25 percent to 33 percent of each issue. Its members are willing to make adjustments to ensure — and full implementation of the necessary expansion — stimulus program of 1.1 billion euros.