Hello everyone. I hope things are going well. Last year and maybe the year before that. Many of you may have heard unpleasant things about the Chinese economy. Such as economic downturns and recessions due to the real estate market to blow up. While those are true, and while they may seem completely unrelated, it can be relatable now. There have been developments and now it may impact us. And by us I mean people who simply trade crypto on different exchanges. As you all know by now if someone reads what I write, I usually cover these macroeconomic things when it can be correlated to the crypto markets.
Now what I want to say is, China is now planning a big stimulus. There is news about China pumping in north of a trillion dollars or Yuan into the economy. This is to curate the supposed slowdown they're having. Now whether the amount is in dollars or Yuan is still up for debate or as I may say it is not clear yet. If it is in your hand then it is not actually that much money. But if it's dollars which it could obviously be because China is such a big economy, then the average Chinese are going in for buying spree. And here comes the second hurdle. China has banned all sorts of crypto and crypto mining a few years ago. But such regulations do not hold so strictly in in Hong Kong. So what big Chinese congromates are doing is that they are setting up sister operations in Hong Kong. And then they are holding digital assets over there. This lets them into the crypto market which is now very much in the spotlight after last year. And they can also escape Chinese regulation on the mainland now since these systems exist. A stimulus of the amount we just discussed will obviously trigger a lot of people buying assets and among those will be digital assets. Many may know that whatever the official laws in China are, there are always people who operate in the gray area. Exactly by that, China has reclaimed around 10% to 15% of the global hash rate, so mining is back on the table again.
This new stimulus program is mainly targeted to remedy the pressure of the Chinese currency which is not having a very good time. And in such time of uncertainty, many Chinese may believe that crypto is actually a safer asset. So if all that money is real and the scenarios I just talked about, happen, then it might pump a lot of money into the crypto markets.