China Warns Against Cryptocurrency ‘Speculation’ Amid Blockchain Hype

A local media claims that China should embrace blockchain technology but not “speculate” about cryptocurrencies such as Bitcoin.

On Oct. 29 Reuters reported quoting the local media outlet The People’s Daily. Beijing previously announced support for blockchain should not be read as support for cryptos.

The local media, The People’s Daily, that reported is a publication under the direct control of the ruling political power, the Communist Party of China.

“Blockchain’s future is here but we must remain rational,” it wrote. The publication continued:

“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.”

Bitcoin Still Popular in China

On Oct. 29 cryptonewspoint reported that China Passes First-Ever ‘Crypto Law’ Going Into Effect on January 2020. As per the report, the new regulatory framework aims to set standards for the application of cryptography and the management of passwords. The text is largely focused on Government Centralized Password Management and does not explicitly mention cryptocurrency, though it does focus on cryptography, a key component underpinning cryptocurrencies such as Bitcoin.

China’s fourteenth crypto rankings report Bitcoin (BTC) ranked as 11th and EOS retaining the top spots as of the end of September 2019. The crypto ranking report is released by China’s state-backed tech workgroup with total rankings lists ranks of 35 assets.

Xi Jinping, China’s President has called for the country to accelerate its adoption of blockchain technologies as a core for innovation. Xi stressed that the implementation of integrated blockchain technologies is key in promoting technological innovation and transforming industries.

Xi’s push for greater blockchain adoption comes against the backdrop of China’s long-standing aversion to — and a crackdown on — cryptocurrencies.

Source: Reuters.com | Image: Shutterstock

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