China's interest in blockchain and cryptocurrencies has reignited after President Xi Jinping praised these technologies, sparking nationwide curiosity.
On social media platform WeChat, searches for Bitcoin and blockchain-related terms have dramatically increased, with blockchain seeing a twelvefold surge.
Publicly traded Chinese companies with blockchain ties have soared on the Shanghai Stock Exchange, with several stocks hitting the daily 10% increase limit.
Internationally, a NASDAQ-listed Chinese firm, dubbed a 'blockchain concept stock,' experienced a 100% spike in just one day.
In summary, there's been a resurgence of 'crypto mania' across China, yet state media caution investors to stay grounded, to avoid the pitfalls reminiscent of 2017.
China’s Crypto About-Turn
China once stood as the central hub for Bitcoin and cryptocurrency developments, birthing key industry players like Bitmain, influenced by a culture that embraces risk and innovation.
However, in 2017 and 2018, Chinese regulators imposed restrictions on cryptocurrency trading and related activities, causing Bitcoin to fade from the public spotlight.
Recently, China shifted its stance dramatically as President Xi Jinping advocated for blockchain's integration as a key innovative technology during a Central Committee meeting. reported by Blockonomi Xi emphasized the vast potential of blockchain across various sectors such as finance, education, healthcare, and food safety, according to the state-run Xinhua. revealed An editorial in the People’s Daily, backed by the Communist Party, advised caution amidst the exuberant blockchain discussions, underlining the importance of rational assessment.
Keep Calm
According to Reuters The publication continued, stressing that while blockchain has risen with cryptocurrencies, advancing blockchain should not equate to indulging in virtual currency speculation.
Despite calls from People's Daily to slow down the blockchain momentum, interest remains high, with experts noting ongoing enthusiasm for Bitcoin on platforms like Weibo and Baidu.
Online searches for Bitcoin (比特币) in China show continuous strong interest across Weibo, WeChat, and Baidu.
Too Late
Reports indicate a major Chinese bank has invested in a cryptocurrency firm, highlighting growing institutional interest.
Dovey Wan from Primitive Ventures noted that China Merchant Bank's move to invest in BitPie, a prominent Bitcoin wallet provider, suggests a governmental interest in integrating cryptocurrency within national frameworks. pic.twitter.com/hg8O03ZYQX
— Alex Krüger (@krugermacro) October 29, 2019
This investment may conflict with People's Daily’s cautious perspective, yet the financial institution has not withdrawn, hinting at potential strategic nationalization of cryptocurrency.
I have been covering the cryptocurrency world since 2013, contributing to top industry outlets such as LongHash, NewsBTC, and Decrypt. I am also a part of HTC's EXODUS team and a Bitcoin holder. Reach me at [email protected]
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