Blockchain technology should be embraced by China but not “speculate” about Bitcoin and other cryptocurrencies, state media claim.
“We must remain rational”- State Newspaper
As Reuters reported on October 29 quoting local news outlet the People’s Daily, Beijing’s support for blockchain shouldn’t be read as automatic support for cryptocurrency.
A publication, The People’s Daily is under the ruling political power of the Communist Party of China.
“Blockchain’s future is here but we must remain rational,”, The publication continued:
“The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”
Bitcoin still peaking after blockchain remarks
Chinese President Xi Jinping publicly pledged to make China the number one in the world when it comes to blockchain technology. Days after, the warning came out.
Jinping’s words came along with China signing a new so-called “crypto law” which would govern various aspects of blockchain technology and enter into force in January.
Major surge in the Bitcoin price was suggested to be triggered by the events which explain why on Friday, Bitcoin expanded from 7,400 to local highs around 10,500.
Cryptocurrency trading is banned in China but with Xi not mentioning anything, it may perhaps suggest a change in policy.
After everything, Bitcoin still remains buoyant, with the weekends gains enduring to see BTC/USD still up 28%.