Blockchain hype: China warns against crypto-“speculation

State Newspaper: “We Must Stay Rational”

As Reuters reported on 29 October, the local news platform People’s Daily reported that Beijing’s recent support for Blockchain is not interpreted as support for crypto.

The People’s Daily is a publication under the direct control of China’s ruling Communist Party.

“The blockchain has potential for the future, but we must remain rational,” the newspaper said. They went on to say:

 

“The rise of blockchain technology coincided with the rise of crypto currencies, but when we talk about innovation in blockchain technology, it doesn’t mean that we should speculate with virtual currencies.

 

Bitcoin continues to grow despite blockchain comments

The subtle warning comes days after Chinese President Xi Jinping publicly promised in a speech to make the country the world leader in the blockchain area.

At the same time, China has signed a new so-called “crypto-law”. This law regulates various aspects of blockchain technology and comes into force in January.

Many people suspect that these events triggered the sharp rise in the Bitcoin price. On Friday, the Bitcoin exchange rate had risen from 7,400 US dollars to highs of up to 10,500 US dollars.

Crypto currency trading is completely banned in China. However, Xi did not mention anything that might indicate a change in attitude in this regard.

The mood around Bitcoin is still positive. Since the gains at the weekend, Bitcoin is still 28 percent in the plus