Topic: CNY/USD Currency Exchange With BitYes: Circumvent Government Capital Controls (Read 1157 times)

Use Bitcoin to convert USD to CNY

Below is an explanation of how to convert USD to CNY using Huobi, BitYes, and EgoPay while avoiding exchange rate risk. The following example uses $20,000 as the amount to be converted and assumes BTC/USD price 350 and BTC/CNY price 2150 (0.1628 USD/CNY exchange rate) at the time of conversion.

1. Deposit USD to EgoPay. ($12 EgoPay fee)
   EgoPay USD balance = $20,000 - $12 = $19,988

2. Deposit USD from EgoPay to BitYes. (zero fee in promotion period)
   BitYes USD balance = $19,988

3. Deposit 30 BTC to Huobi. (to be used for borrowing to eliminate exchange rate risk)

4. Use USD on BitYes to buy X BTC. (zero fee in promotion period)
   BitYes BTC balance = $19,988 / $350 = 57.11 BTC

5. Borrow X BTC from Huobi and sell. (0.1% interest fee per day)
   Huobi BTC balance = 30 + 57.11 – 57.11 = 30 BTC
   Huobi BTC loan = 57.11 * (1 + 0.001 interest fee) = 57.17 BTC
   Huobi CNY balance = 57.11 * 2150 = 122,786 CNY

6. Withdraw BTC from BitYes and deposit to Huobi.
   BitYes BTC balance = 57.11 - 57.11 = 0 BTC
   Huobi BTC balance = 30 + 57.11 = 87.11 BTC

7. Pay back X BTC loan to Huobi.
   Huobi BTC balance = 87.11 - 57.17 = 29.94 BTC
   
8. Withdraw from Huobi to your China bank account. (0.3% Huobi withdrawal fee)
   CNY bank account balance = 122,786 * (1 - 0.003 withdrawal fee) = 122,418 CNY


$20,000 / 122,418 CNY = 0.1634 effective USD/CNY exchange rate (0.37% worse than 0.1628 actual exchange rate)


Use Bitcoin to convert CNY to USD

Below is an explanation of how to convert CNY to USD using Huobi, BitYes, and EgoPay. The following example uses 200,000 CNY as the amount to be converted and assumes BTC/USD price 350 and BTC/CNY price 2150 (0.1628 USD/CNY exchange rate) at the time of conversion.

1. Deposit CNY to Huobi. (10 CNY bank fee)
   Huobi CNY balance = 200,000 - 10 = 199,990 CNY

2. Use CNY to buy BTC on Huobi. (zero fee)
   Huobi BTC balance = 199,990 / 2150 = 93.02

3. Withdraw BTC from Huobi and deposit to BitYes.
   Huobi BTC balance = 93.02 - 93.02 = 0 BTC
   BitYes BTC balance = 0 + 93.02 = 93.02 BTC

5. Sell BTC on on BitYes. (0.2% fee)
   BitYes USD balance = 93.02 * 350 * (1 – 0.002) = $32,491.89

6. Withdraw USD from BitYes to bank account via wire transfer. (0.1% fee)
   USD bank account balance = 32,491.89 * (1 - 0.001) =  $32,459.39
   

$32,459.39 / 200,000 CNY = 0.1623 effective USD/CNY exchange rate (0.31% worse than 0.1628 actual exchange rate)