China has managed to capture the spotlight in the world of blockchain and cryptocurrencies with its stance on both the innovations, embracing the former and shunning the latter. Recently the Chinese state media further cemented that ideology by implying that the country should not “speculate” about cryptocurrencies amidst the blockchain boom.
Despite the fact that cryptocurrencies have evolved quite a lot since Satoshi Nakamoto launched Bitcoin back in 2009, some countries and regulators still remain skeptical about accepting them, China being one of them. The country declared war with the crypto ecosystem back in 2017 when it enforced a blanket ban on all initial coin offerings (ICOs), crypto trading and exchange operations as well.
But on the other hand, China has embraced the underlying technology behind cryptocurrencies, Blockchain, and the country is progressing by leaps and bounds in that sphere. However, according to Reuter’s report on October 29th, the country’s media urges investors to maintain a sense of rationality and not confuse Beijing’s support for the blockchain tech as a boost for virtual currencies.
According to the local news outlet People’s Daily, a publication that is under the direct control of the ruling political power the Communist Party of China, “Blockchain’s future is here but we must remain rational”. It further 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.
The subtle warning about remaining calm in respect to the crypto boost comes only days after the remarks of Chinese President Xi Jinping. As per reports, last week the President shared his views regarding the growth of blockchain tech in the country maintaining that China should work on accelerating the development of blockchain.
This comment alone was enough to drive up the shares of firms that are engaged in or believed to engaged in blockchain. Many in the crypto community believe that it also drove up the price of bitcoin, which on Friday expanded from $7,400 to local highs around $10,500.
Moreover, his words came along with China signing a new so-called “crypto law”, which reportedly will be governing different aspects of blockchain technology and is said to go into effect next year in January.