Ripple: Chinese Government Initiates Massive Fiat Printing, Potentially Fueling Crypto Market Influx – Will XRP Reap Profits?

China’s economy has been struggling for some time and other nations are beginning to get concerned about how this situation may impact negatively on the global economy. Part of the problems are the decline in economic activities and reduced flow of credit in the region. So far, the Chinese government has enacted some economic stimulating initiatives to salvage the situation and improve its stock market

Experts and analysts are not confident that these interventions are sufficient to fix the challenges citing that the problems are structural. For context, industrial output surged by 3.7% in July compared to the previous year which is slower than June’s growth rate of 4.4%. Additionally, banks in China issued 89% fewer loans in July vs June and this is the lowest that has been recorded since late 2009.

Apart from the fear of negatively impacting global economic growth, investors also have a growing concern that China’s real estate turmoil may have a contagion effect on the United States dollar as well as other commodities. The key beneficiary of the continued outflow from the Chinese stock market may likely be the U.S. stock market and this will boost the dominance of the dollar.

To prevent any impending offset, the Chinese authorities are creating initiatives to release massive fiat to cushion the market, a move that can indirectly bolster the attractiveness of XRP.

Dominance of the Fiat Dollar or the Adoption of XRP, BTC

In the event that capital flows away from Chinese equities, it tends to weaken the local currency, and investors will turn to lower-risk options like the S&P 500 index or U.S. money market funds. However, if the outflows from China’s stock market are controlled, the situation will be different and if this is the case, the dominance of the U.S. dollar for international trades will be challenged and this, in turn, will likely favor crypto assets like Bitcoin (BTC) and Ripple’s XRP.

Buy XRP quickly and securely with PayPal, credit card or bank transfer at eToro. Visit Website <<Many regions are already bullish on the potentials of either XRP or BTC as an alternative currency to complete their cross-border transactions. Member countries of the BRICS Group are assumably one of the biggest supporters of this movement. In their quest to contest the possible hegemony of the U.S. dollar and consider alternative payment options, there are speculations that they may turn to cryptocurrencies or a gold-backed currency.

Meanwhile, the possible repercussions that may stem from the stock market fluctuations in China, which is also a member of the BRICS Group, are giving BTC traders valid concerns. A few days ago, the Shanghai Shenzhen CSI 300 Index, a key indicator of the Chinese stock market, initially went up by 5.5% before closing the day with a gain of 1.2%. While this is an improvement, it still places China’s shares amongst the lowest performers in terms of equity indexes globally.

A look at this momentum, other historical price trends as well as a broader shift in investor sentiment toward avoiding risk-on markets during periods of macroeconomic uncertainty gives more credence to traders’ concerns.

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