While Yuan rallied following last night’s trial balloon by the PBOC – when as reported overnight the PBOC was studying possible scenarios of yuan exchange rate and capital outflows in 2017 based on models, stress tests and field research, and is preparing contingency plans – Bitcoin in China soared to new record highs amid massive volumes.
It appears fears of crackdowns on “virtual” currency outflows – as described by China researchers – is not there yet as the momentum-chasing Chinese have found a new friend as Commodities crumble.
In USD, Bitcoin remains just shy of record highs:
But as we noted earlier, for those buying into bitcoin here on the momentum, most of which originates in China, we urge readers to be cautious as by now the PBOC has certainly noticed that the digital currency remains one of the final, and most successful, means of bypassing capital controls in China. Should Beijing mandate that bitcoin no longer be a means to illegally transfer capital offshore, there is risk of a dramatic, and sharp, drop in its price.
Source: zero hedge