In the wake of Chinese authorities clamping down on bitcoin withdrawals and bitcoin exchanges, there’s been a lot of chatter about whether the banks could be forced to switch to digital money.
There’s also been some concern about the amount of Chinese cash being used for transactions.
The latest data from the Australian Reserve Bank shows that cash withdrawals have been down around 20% this year compared to last year.
The Reserve Bank’s data shows that the amount used in cash transactions has fallen by around $2.7 billion, or around $500 million per day, in the last 12 months.
It’s a big drop, but it’s also a small fraction of the total amount of cash transactions.
“The biggest driver of cash transaction volumes was increased cash use,” said Ian Jones, chief economist at research group IHS Global Insight.
“This was driven by Chinese investors, but also by domestic consumers.”
This is not the first time the Chinese government has come under pressure over its control of the global financial system.
In March, China’s central bank issued a new directive requiring banks to use more cash, but the change only came into effect for some time.
The Chinese government said it was responding to the “rising demand” for cash in China and in overseas markets.
“China is still a cash-intensive country, but we’re seeing a rise in the demand for cash,” Jones said.
It’s not just the amount that’s being held, but how it is being held. “
We don’t know exactly how much cash is being used in China, but anecdotally we’ve seen that a lot more people are holding more cash.”
It’s not just the amount that’s being held, but how it is being held.
In an effort to curb the flow of cash, some countries have adopted a form of cash-like payment, where a user would receive a QR code, which would then allow them to use the service to pay for goods and services.
It may not sound like much, but QR codes have become the go-to method of payment for some users in the US.
“What that means is that it’s very easy to get money in the future, but there’s a lot going on behind the scenes, so it’s really difficult to verify that the money is real,” Jones added.
“That’s why we’re starting to see some of the cash being made into bitcoin, and the use of it in China.”
The Reserve bank data is also a reflection of how the Chinese authorities have been trying to influence the global economy.
For some time, they’ve been pushing the adoption of bitcoin, the digital currency that is increasingly being used to buy goods and other services.
In October, the Chinese central bank banned the sale of bitcoin in the country, and it was only after a crackdown that the bitcoin price began to rise, rising to a record high of $1,000 per coin on Monday.