China has made the news a couple of times the last few months. With the nation’s central bank making its move towards launching their very own state-backed cryptocurrency, China is still very strict with their regulations regarding cryptocurrencies and decentralized projects.
Chinese President Xi Jingping recently shook the entire crypto industry when he went on stage and showed his support for blockchain technology. He urged the communist party of china to double down on efforts with blockchain technology and consider it as a core technology that needs to develop within the nation. Xi stressed on the fact that China’s already has a strong base in this industry.
This news was a massive boost for the Bitcoin holders, as Bitcoin saw the highest intraday trading gains since 2011, with Bitcoin jumping 42%. The Chinese stock market also saw an upward rally with all the A-Share firms that were related to blockchain-technology hit the daily limit of 10% as soon as the stock market opened on Monday. Everyone believed that this was China’s way of adopting cryptocurrencies and blockchain as a whole. Now it looks like we were too early to judge.
On November 18 2019, President Xi Jingping gave a speech on CCTV1 where he thrashed cryptocurrencies. The news was shared by Co-founder of crypto investment holding firm Primitive Ventures Dovey Wan.
Wan highlighted a part of the speech which showed that the president had criticized cryptocurrencies and has addressed it as “financial fraud”, and illegal Ponzi Schemes.
Wan translated that the President said:
“Even tho these seem to be lively and vibrant today, tomorrow they may all be on the list (of crime)”
This wasn’t anything unusual as the authorities have been quite vocal about all the blockchain hype that was brewing. Soon after the President’s bullish blockchain speech, Chinese state media warned investors not to get too excited about Beijing’s support for blockchain technology as a boost for cryptocurrencies.
It looks like China is only interested in utilizing blockchain technology in various sectors like fintech and the supply chain. Wan shared similar views as she conclude saying:
“It’s pretty clear to me China has no intent to embrace any public open cryptocurrency at all and that’s why it’s always a Blockchain Not Bitcoin narrative And down the road a nationalization of related cryptocurrency infrastructure is inevitable (asic, mining, trading).”