China’s Communist Party Follows Suit with President Xi Jinping’s Blockchain Support Calling
China’s Communist Party (CCP) wants its members to register their commitment to blockchain on a permanent distributed ledger following Presidents Xi’s recent comments on the technology. Since Xi, the world’s most powerful man asked his countrymen to seize the opportunity presented by blockchains, the party has become vocal on the adoption of blockchain technology.
CCP Launches a Decentralized Application
In a post published by the party’s propaganda channel, CCP is launching a decentralized app (DApp) built on a blockchain for members of the party to pledge their loyalty to making the national blockchain project successful. The dApp, Original Intentions Onchain, allows members to pledge allegiance to the party’s policies which is then stored on a public blockchain which allows for transparency.
The post further states Lingzhu Technologies, a Beijing based blockchain firm, is behind the project with little detail offered on the actual team itself. In early 2018, the company received funding from the China's Tsinghua University helping the company launch its OF blockchain, and issue the OFCoin. The cryptocurrency saw a 90% jump on Sunday on news of its partnership with the CCP – similar to most Chinese based tokens (which saw gains of 25%-100% during the weekend).
Chinese Gold Rush for Blockchain-Based Assets
The powerful speech from China’s president caused the market to turn extremely bullish as Bitcoin (BTC) gained 40% in a day climbing above $10,000 USD on Saturday. The price has since retracted to the $9,300 USD level as bears aim to take control of the market. Bitcoin’s price spike had a ripple effect on a number of cryptocurrencies (esp. Chinese based tokens) and blockchain affiliated companies.
NASDAQ listed blockchain company, Xunlei, saw its price grow by over 200% following the speech by Xi as the market reacted positively to the news. The Shenzhen based company develops blockchain-based solutions for companies offering high throughput and scalability. Furthermore, the number of searches for the terms “bitcoin” and “blockchain” across Baidu (China’s google) and WeChat saw significant gains as the population grows in the industry.
China looks to become the first nation to create their own digital currency despite the earlier crackdown on ICOs and fiat to crypto exchanges. The country is working on crypto regulations to streamline the industry with a set of laws expected to go in effect in January next year.