It is common in the blockchain and cryptocurrency community that a piece of prominent news directly affects the price of the world’s most influential digital assets, such as Bitcoin, either positively or negatively depending on the development. It could be as simple as a high-profile figure talking up the industry, and that would be enough to drive up the price in most cases.
That appears to be the case this time around, as the President of the People’s Republic of China Xi Jinping, who is also the General Secretary of the Communist Party in the Asian country, stated that the nation needs to “seize the opportunity” that the blockchain technology is currently presenting.
The Blockchain Has Several Applications in China
Xi’s words came in the middle of the 18th collective study of the Political Bureau of the Central Committee on Thursday in Beijing. He also emphasized how the blockchain technology has several applications in his nation, covering things like business financing to public transportation and solutions in the fight against poverty.
In his intervention in the meeting, Xi observed that “we must take the blockchain as an important breakthrough for independent innovation of core technologies” to the present committee members.
He also stressed that “we must clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation,” which is music to the community’s ears. In fact, since the Chinese authority’s words, Bitcoin, which had been dormant and struggling to gain traction for weeks, showed a revival.
A Marked Surge
At the moment of writing this piece, Bitcoin was exchanging hands at $9,660.36, which was a $518.78 increment (the equivalent of 5.67%) over the last 24 hours. Not so long ago, it was hovering between $7,000 and $8,000.
The impact of Xi’s remarks has been evident, as there are no records or registers of him talking up the blockchain technology (which powers cryptocurrencies) ever before. These are believed to be his first in-depth words about the world-changing tech.
In the same theme, the President also stated that it would be “necessary to implement the rule of law network” in the already existing blockchain networks and systems, as well as in future ones. He said that a top-down approach is required, one that includes implementation, guidance, and regulation.
Increasing the Reach of Blockchain Testing
The influential authority observed that the testing of the blockchain technology should be widely available and widespread, and that there needs to be sizable investments in training platforms and “innovation teams” before thinking about implementing it.
Jinping also talked about creating the “Blockchain+” initiative, which would be an ecosystem alluding to personal development, including basic things like employment, food, education, and safety.
The president’s remarks are news worthy because the People’s Republic of China bans cryptocurrency use since 2017, thanks to a decision from the national bank. However, there seems to be recent advances on that front given that digital renminbis are being developed by the institution.
By Andres Chavez