It has been confirmed that the latest upward movement of Bitcoin was the result of China’s recent stance on the blockchain technology and the pronouncement made by the Chinese president Xi Jinping. This is as the country’s media highlighted that the country will lay emphasis on the underlying technology.
However, China’s state media has announced that the country should not speculate over cryptocurrencies but focus on the blockchain technology.
A Call To Be Rational
The People’s Daily, a local media stated that the government’s pronouncement should not be misconstrued as a support for cryptocurrency maintaining that focus must be on the technology behind Bitcoin.
Reuters quoted the daily newspaper that is controlled by China’s ruling Communist Party stating that the media wants the country to “remain rational”.
In the October 29 edition, the publication wrote:
“Blockchain’s future is here but we must remain rational,” it wrote. 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.”
Xi had earlier in the week vowed that the Chinese government would make the country the number one in blockchain. The crypto market latched on the statement and coins such as Bitcoin made remarkable gains that saw a resurgence of activity in the industry.
Crypto Law in The Works
China is also signing a new crypto law that would take effect from January. The essence id to regulate blockchain and other related aspects of technology. Cryptocurrency trading is illegal in China but it has a thriving mining industry that holds a large chunk of all mined bitcoins.
The president did not say anything indicating that there would be a change in the policy on cryptocurrency but his speech was enough to buoy the coin market, moving the price of Bitcoin closer the $10,000 mark from above $7,000.