Jeremy Allaire, CEO of crypto financial services firm Circle, believes that the sudden rally of Bitcoin relates to the US-China Trade War. The CEO called Bitcoin a “safe haven” during economic turmoil.
In an interview with CNBC’s Squawk Box, Jeremy Allaire discussed why Bitcoin climbed over the weekend. According to Allaire, investors are embracing Bitcoin as a “safe haven” amid the US-China trade war.
When talking about the sudden surge of Bitcoin, relating it to China devaluing its currency, the yuan, Jeremy Allaire praised bitcoin as a reliable store of value during stock market turmoil. Allaire said:
“Humanity has now created a non-sovereign, highly secure mechanism to store value that can exist anywhere that the internet exists. It’s uncensorable, it’s unseizable.”
Andrew Ross Sorkin, co-anchor of CNBC’s Squawk Box, questioned if the Bitcoin rally is really caused by Chinese investors diverging money in other assets like Bitcoin. According to Sorkin, it is not easy to buy Bitcoin in China. Allaire responded:
“There is a lot of Chinese national participation in this market. There are many large offshore exchanges,” he added, which people are using to bet on the industry.”
Allaire furthermore explained that despite China’s crypto crackdowns, there’s a significant amount of crypto activity in China through offshore platforms. Therefore, it is not strange to see Chinese investors flooding money into bitcoin.
See the full interview with Jeremy Allaire here: