Beijing`s Digital Currency Boosts Fintech Companies Shares In China

China is near the end of the preparation for the launch of their state-owned cryptocurrency, issued by the Peoples Bank of China (PBoC). The deputy director of the bank, Mu Changchun, made an announcement, saying that the financial institution is towards the end of the preparation process, and not far from the release date of the crypto project. According to Mu, the new digital currency may play the role of an alternative to the Yuan. Mu also noted that the new coin might serve as a payment method in some of Asia’s most prominent online companies, such as WeChat and Alipay.

Despite the volatility in the crypto sector, indexes and stocks recorded sky-high figures. Fintech company shares rose with over 50 percent in 2019 alone. Companies like Security Technology Inc. and Beijing Certificate Authority experienced substantial increases in their shares price. Security Technology Inc’s price jumped over 50% in 2019, while Beijing Certificate Authority saw price peaks of over 200% since the start of 2019.

And although PBoC has no definite release date, investors from all around the world rush into buying shares from fintech companies. PBoC’s governor, YI Gang, stated that the bank would continue its functions, despite the release of the digital currency.

“PBoC will most probably continue to operate in the traditional banking in the exact same way that most of the commercial banks do. Mobile phones will carry most of the digital currency payload as means of storing cryptocurrencies”, said Gang.

Experts in China believe that investments in fintech companies tend to be most significant in the e-wallet companies, IT infrastructure firms, and circulation operations.

While investors’ eyes point towards Asia, the entire crypto sector is in a bearish stance, with Bitcoin losing over $2,000 over the past week. As of press time, the leader in cryptocurrencies trades at $8,052.77. Ethereum’s losses are even higher since ETH’s price tumbled down with 24.03% to hit $165.94