China state media claimed that China should welcome blockchain and not just speculate about it.
“We must Remain Rational.”
On Oct. 29, Reuters reported having quoted the People’s Daily that Beijing’s initial announcement that they supported blockchain should not be interpreted as to its support for crypto. People’s Daily is a publication in China that is under the direct influence of the governing power. That is the radical Communist Party of China. It said:
“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”
Chinese President Xi Jinping said that China is supposed to hasten the full initiation of the blockchain technology. He added that it is the digital ledger that supports the majority of the cryptocurrencies such as bitcoin.
These were the remarks that were made, and people believed that the Chinese government was advocating for the adoption of blockchain technology. However, the People’s Daily did say that they must remain rational in as much as blockchain is here. The post said that blockchain technology also brought about the rise of cryptocurrencies. It continued to say that the invention of the technology should not bring about much speculation in digital currencies.
Crypto traders from three Chinese exchange platforms mentioned to Reuters that they were issued with a notice that came from the Shanghai Stock Exchange. The notice categorically said that the listed companies were to only talk facts when speaking about blockchain-related issues. They were not to create any hype or exaggerate anything for that matter.
The Chinese government descended upon the cryptocurrency market in 2017 and banned everything about cryptocurrency. It sited that cryptocurrency trading was enhancing pyramid schemes and also facilitated illegal activities.
China is said to be signing a new law that will be enforced starting January, known as “crypto law.” The law is supposedly going to put regulations on several aspects of the blockchain platform. Many people say that the events and announcements triggered a significant boost in the Bitcoin initial price. It went from $7,400 to the highs of $10,500.