China Accelerates Evolution of Blockchain Technology

Chinese media recommended investors to stay rational and not to take Beijing's support for the blockchain technology as a boost for virtual currencies. Chinese President Xi Jinping's comments raised shares in companies related to blockchain and the price of bitcoin.

October 29, 2019, | AtoZ MarketsPresident Xi stated last week that China should accelerate the evolution of blockchain technology, a large digital book that forms the backbone of many cryptocurrencies such as bitcoin. His remarks sparked a rush to the actions of companies engaged in or suspected of being involved in the blockchain or digital currency-related businesses. The future of the Blockchain is here, but they must remain rational, the ruling Chinese Communist Party, said in a comment on Monday.

Innovation In Blockchain Technology

That of cryptocurrencies has accompanied the rise of blockchain technology. But they stated that the innovation of blockchain technology does not mean that they should speculate in virtual currencies.

Traders from three Chinese brokerages also told that they received a notice from the Shanghai Stock Exchange on Monday. That said, for any blockchain-related, they are asking listed companies to make statements based on facts. And they should not make any exaggerated claims or create a vicious hype.

The Shanghai Stock Exchange did not instantly reply to a request for comment.
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The country's cryptocurrency industries are crashed down

The government crashed down on the country's cryptocurrency industry in 2017. That happened with regulators banning the practice of creating and selling virtual currencies or tokens and closing local cryptocurrency exchanges. The government claim that they were facilitating illegality fundraising and pyramid schemes.

However, Chinese officials said at the time that research on blockchain technology was still inspiring. Yet, Xi's comments were the first time that Beijing had openly cast such support behind the industry.

Beijing is also creating its digital currency. However, the central bank issued it to reduce the costs of circulation of paper money and strengthen the control of the money supply by policymakers.

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