Mike Novogratz, the Founder, and CEO of Galaxy Digital, the Crypto Investment Bank, said that China’s President Xi Jinping gave credibility to blockchain and crypto by calling the country to accelerate blockchain adoption.
On November 5, Novogratz delivered his remarks speaking at the Reuters Global Investment Outlook 2020 Summit in New York.
However, he believes that the Xi’s announcement in late October triggered the recent surge in Bitcoin’s price. Novogratz also stated that by urging China to embrace blockchain technology for the sake of the country, Xi “just credentialized crypto and blockchain.”
On October 24, Xi expressed his positive stance on blockchain technology at the Politburo Committee session on blockchain technology trends. The President emphasized that the adoption of integrated blockchain technologies is key to promoting tech innovation and industry transformation.
Consequently, the People’s Daily reportedly clarified that Beijing’s positive stance on blockchain technology should not be interpreted as support for cryptocurrencies such as Bitcoin.
Despite the agency’s warning on “speculation,” China has just made another step in favor of cryptocurrencies on November 6 by confirming that Bitcoin mining will not be an undesirable industry in the country.
While cryptocurrency trading is still formally banned in China, the Standing Committee of the 13th National People’s Congress in China passed a new “crypto law” on October 26 that will take effect on January 1, 2020.
However, the new legislation specifies new standards for the application of cryptography and the management of passwords in the country and implicitly relates to cryptocurrency regulations.
Thus, it has been analyzed that International Economic Exchanges predicted that China’s central bank will be the first to launch a digital currency successfully.