The Chinese government is strongly supporting the push towards blockchainizing its economy as seen by President’s Xi’s latest remarks on blockchain technology. While the government makes steps towards fully adopting the technology, certain sections remain disturbed by bitcoin’s public nature, volatility and the use of crypto in aiding criminal activities.
State Chinese newspaper headlines Bitcoin
A published post on Chinese state newspaper, Xinhua, exposed the challenges that Bitcoin faces in its quest to be a global currency while offering a side dish of hope towards adoption. While the news article titled, “Bitcoin: The First Successful Application of Blockchain Technology”, was not all that appealing to Bitcoin maximalists, the article published on Monday may push investors towards looking at the coin once again.
Chinese state newspaper today (Xinhua)
— Matthew Graham (@mg0314a) November 11, 2019
The article has a rather harsh tone towards Bitcoin, referring to the coin as a “currency” in quotes – and comparing it to fiat regulated by the central bank.
The opening statement reads,
“First of all, Bitcoin is not a tangible currency. It is produced and operated on the Internet … [Unlike] banknotes [which are] supported by national laws and sovereign credit, Bitcoin is completely born in the modern technology Internet era.”
Furthermore the article touched on the innate features of Bitcoin including the upcoming halving and ease of transfer. However, the anonymity feature was condemned for aiding cryptocurrency theft, money laundering, and other illicit/illegal activities.
A lukewarm state of blockchain in China
The rush in the long market for BTC is gradually dying down since the spike towards $10,000 resistance levels in late October following President Xi’s embracing speech on blockchain. Currently trading at $8,700 USD across major exchanges, the price of BTC has experienced a rather volatile 24 hours as price spiked to $9,084 before crashing to current levels, signaling possible manipulation of price.
However, the bitcoin community remains confident that the move is bullish for the price given the awareness to millions of citizens in the country on the headlines. With the mining ban lifted, the overall sentiments around the blockchain industry-leading with the pioneer crypto – is generally positive.