ChineseIt was thought that it remained relatively far from the industry, with the official release of its bans on cryptocurrencies in 2021. However, Chinese-based assets recorded strong rallies in February and gained attention. While the country’s central bank is currently pushing for a faster recovery from the pandemic-induced slump, a similar rally is possible in the coming days.
China Central Bank Pushes for Recovery Efforts
The People’s Bank of China (PBOC) announced on Friday that it will reduce the amount of cash banks must hold as reserves for the first time this year. The purpose of this move is to help maintain adequate liquidity and support the emerging economic recovery.
The Central Bank announced that it will lower the required reserve ratio (ZKR) by 25 basis points (bps) for all banks as of March 27. However, this discount does not apply to banks that have already adopted a 5% reserve ratio.
Despite predictions that China is taking an anti-crypto stance, recent reports suggest otherwise. China Liaison Office officials cryptocurrency closely monitors its progress. This was welcomed by many experts.
However, this trend is not limited to governments. Private companies in mainland China are also keeping a close eye on Web3 technologies and crypto usage. For example, China Telecom is collaborating with major crypto firms to develop SIM cards based on blockchain technology.
Is an Altcoin Rally Possible?
The prices of some well-known Chinese cryptocurrencies have risen significantly in recent months, with Conflux rising by almost 124% over the past seven days.
NEO, the Chinese-based Layer-1 blockchain, is also trying to capitalize on recent narratives. The price of NEO is up significantly today and is currently trading near the $12 level with a market cap of around $844 million.
VeChain, Polkadot, IOST, and Filecoin are among other notable assets that have the potential to appreciate in the coming days.
You can follow the current price action here.