In a television speech, the president of China made good comments about Blockchain, but his comments about Bitcoin were not good.
Various Chinese authority figures recently stated that they still maintain their position on “Blockchain, not crypto.” Those affirmations may have a chaotic impact on the crypto community.
It should be noted that this statement was made on CCTV1, which is broadcast on cable or satellite television or without any of these services. The speech lasted about 60 minutes and there was a discussion on the subject of cryptocurrencies and Blockchain technology.
Program Shown on CCTV
During his 60-minute speech, Chinese President Xi Jingping talked negatively about cryptocurrencies and BTC. However, he highly praised Blockchain technology, in addition to mentioning its positive aspects and the great potential that it offers in the industries and the economy of the country.
In the program shown by the television channel CCTV1, cryptocurrencies were described as being illegal fraud and market manipulation. Undoubtedly, this comment may have a strong impact on the cryptocurrency trade in China.
Even though BTC was described as a fraud and an illegal trading method during the speech, the Chinese news agency Xinhua spoke neutrally about the cryptocurrency. It was mentioned that the cryptocurrency is one of the greatest successes of Blockchain technology and clarified President Xi Jingping’s ideas about the subject.
On the other hand, President Xi Jinping mentioned that mining and everything related to crypto projects might be considered illegal in the future. However, these activities are excluded from the list of illegal activities for the moment.
Impact of Chinese authorities’ comments on BTC
The comments and opinions of the Chinese government and authority figures about the Blockchain network and Bitcoin are of great value. This is because they can regulate as far as possible the negotiations and trade in the crypto market. This would be negative since China is one of the countries with the most members in the crypto community.
It is worth mentioning that Dovey Wan, the co-founder of Primitive Crypto, was monitoring the speech made on television. He mentions through his Twitter account that there is a great possibility that some CEOs or leading figures in the crypto community will be affected by the negative comments of the speech.
In one of his tweets, he says that he cares about the image of leading market figures since a friend of his is running a project related to DAI, which seems to be contrary to what the government is promoting.
Effect of China’s Statements on Cryptocurrencies
As mentioned above, the Chinese government has a fairly big impact on the Blockchain network and the crypto community. It should be noted that many miners, as well as people of great influence on the market, are there.
The criticism made may lead to stagnation in the price of the main cryptocurrency, since the Bitcoin network depends mostly on the crypto community in China.
It has been observed in recent days that the price of Bitcoin has not varied much since it is between 8,000 and 8,500 USD. This may be due to the reaffirmation of the Chinese government’s position.
By Willmen Blanco