China’s negative attitude towards cryptocurrencies can have bad consequences

As you know, in recent months, reports of China’s negative attitude towards cryptocurrencies have spread around the world. Recently, however, there have been experts who claim that this negative attitude is beginning to be reflected in the poor condition of the economy. Of course, China has banned virtually everything within cryptocurrencies precisely because of the central bank’s digital currency called the digital yuan.

Mike McGlone of Bloomberg Intelligence and Hedge-fund manager Anthony Scaramucci are among the first experts to point this out, adding that these decisions may have triggered a temporary economic downturn as the shares of well-known Chinese companies begin to decline. Namely, the shares of companies such as TAL Education (TAL) -54%, New Oriental Education & Technology (EDU) -48%, shares of Gaotu Techeda (GOTU) -59% or, for example, 17 Education & Technology (YQ) 40%. As for country indices, the Shanghai index fell by 0.7%, the Hang Seng index is lower by -1.45%, the MSCI China index has fallen by -20% since February.