As Hong Kong stares into what appears to be a major economic crisis in the making, a sizeable chunk of the population may be counting on Bitcoin to help them get through the tough times ahead.
Given that no immediate reprisal seems forthcoming, odds are high their dependence on the digital asset is likely to spike even further in the times to come. However, unlike the underlying theme of many speculative reports from last week, there’s no clear indication that people are rushing en masse to trade their HKD for BTC.
Hong Kong Sees No Easy Way out of the Looming Crisis
The last time Hong Kong’s economy faced such bleak prospects was during the global slowdown nearly a decade ago. However, things are vastly different this time around considering that the current economic crisis is, in parts, a byproduct of the lingering political instability.
What’s even worse is that there is a growing feeling among many economists that the current crisis is irreversible in the short run.
If they’re right, the HK$19.1 billion (~$2.4B) in aid recently announced by Paul Chan Mo-Po, the Financial Secretary in Hong Kong government, will do little to alleviate the woes of the city’s businesses and common citizens.
Per an internal assessment of the city’s financial planners, the aid promised by the government will boost the economy by about 0.3%.
Chan, meanwhile, isn’t shy of acknowledging that the situation appears pretty grim and even went on downgrading the GDP forecast for the year to somewhere between 0 to 1% (as opposed to the original forecast of 2-3%). beincrypto.com