By On October 29, Reuters quoted reports coming from Chinese media stating that Beijing’s previously-announced support for blockchain should not be interpreted as support for crypto.
The report explained that China should embrace blockchain technology but not “speculate” about cryptocurrencies such as Bitcoin.
The People’s Daily, a publication under the direct control of the ruling Communist Party of China, wrote:
“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 newsletter persisted that blockchain’s future is here, but urged Chinese residents to stay rational and refrain from speculating on digital currencies.
The warning comes just days after President Xi Jinping said that his administration would embrace blockchain advancement and make the country the world’s leading blockchain environment.
Bitcoin Still On the Rise
Bitcoin curiosity spiked among Chinese internet users following President Xi’s public endorsement of blockchain tech, with the price of BTC surging last Friday from $7,400 to local highs around $10,500.
However, Bitcoin trading is banned in China, and the government’s focus on blockchain development is unlikely to change that stance.
In August last year, Chinese authorities warned against illegal fundraising activities under the guise of “cryptocurrencies”. However, one key business district in Beijing banned promotional crypto activities.
Even so, the interest around Bitcoin still remains high, with the weekend’s gains enduring to see BTC/USD still up 28%.
China’s Continued War on Crypto
On October 26, China passed the first-ever law aimed explicitly at regulating cryptography and password management taking effect on January 1, 2020.
The regulatory law also established the role of a central cryptographic agency, which is tasked with supervising public cryptographic efforts, forming guidelines for the industry.
This is in line with the Communist Party of China’s desire to restrict all crypto trading in the country in favour of a controllable national cryptocurrency.
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