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Crypto World Reacts Positively to Chinese President’s Blockchain Turnaround

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China has suddenly taken the blockchain industry by storm after Chinese president Xi Jinping recently said that the country’s communist party should consider blockchain as a core technology and should commit to the development of the technology. Xi focused on the fact that China already has a solid foundation to develop blockchain technology. Therefore, it is necessary to let China “take the leading position in the emerging field of blockchain.” The country needs to accelerate the standardization of blockchain research, which will, in turn, give China more power in setting rules and standards internationally, Xi said.

The hype

Following the news search volume for the word “blockchain” has seen a surge in numbers on Chinese search engine Baidu and the WeChat messaging application. The word blockchain was searched 72,049 times on Baidu on Friday, this was a 1382.79% surge compared to the previous day. The same entry also saw a 329% growth on WeChat and was searched for 3,331,874 times. The positive mood continued throughout the weekend, with the average search volumes for “blockchain” increased by around 170% on both WeChat and Baidu on Saturday.  However, the search term “bitcoin” saw a 5% dip on Friday on the both the above-mentioned platform. This, however, took a different turn as the world saw a rise in numbers the day after and rose by 144% on WeChat and by 216% on Baidu.

The effect

The Chinese stock market also saw a healthy upward rally, as reported by the Global Times, an English-language newspaper.  All the A-Share firms that were related to blockchain-technology hit the daily limit of 10% to per cent as soon as the stock market opened on Monday.

Companies like Feitian Technologies Co, a Beijing-based supplier of smart-card-based security solutions and products saw a 10 per cent rise in price up to $2.10. The company was previously known to have sold equipment for the safe storage of blockchain-based digital currency.

Shunya International Martech Beijing Co, a Beijing-based integrated communications firm, also saw a 10 per cent rise in share prices. Prior to this, Shunnya had announced that one of its Joint-stock companies specialized in the application of blockchain technology in various sectors like the supply chain finance, smart ports and blockchain-based food traceability management.

The co-founder of crypto investment holding firm Primitive Ventures, Dovey Wan, tweeted a screenshot of the stock market boom, adding that “as expected, almost ALL (over 100) blockchain-related Chinese A-shares hit the daily upper limit (10% intraday gain)”:

Bitcoin (BTC) has also seen a great day as its price rose up by 16% and is also trading above $9400 at the time of writing. On Oct. 26, the market saw Bitcoin’s highest intraday gain since 2011, gaining 42% to trade at $10,500.

The Blockchain Race

As The Daily Chain had reported earlier, the sudden hype for blockchain in China has put the United States of America under some pressure. China being one of the largest economies in the world has the opportunity to be the leading nation of the blockchain era, courtesy of its strong foundation.

On October 25, 2019, Morgan Creek Digital co-founder Anthony Pompliano reacted on twitter to Chinese President Xi Jinping’s statement on Thursday that the time had come for the country to harness the true potential of blockchain technology. Pomp said:

“This will be the space race of our generation. America has to embrace technology, including Bitcoin, or we risk being left behind.”

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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