After Chinese President Xi Jinping came out in support of blockchain technology last month, the cryptocurrency markets saw an extremely bullish breakout.
Beijing called for calm shortly afterwards, reemphasising the “blockchain, not Bitcoin” narrative several times.
Now, it seems China will back up its words with action in the form of “prudent” and “inclusive” regulation.
Blockchain is not equal to cryptocurrency speculation
This morning, the People’s Daily (the CCP’s official media outlet) published a featured commentary entitled “Blockchain, a breaking point for China to overtake”.
The article covers several salient points. Once again, it points out the difference between blockchain technology and speculation in the cryptocurrency industry.
People’s Daily (CCP’s official media outlet) just published another featured commentary as “Blockchain, a breaking point for China to overtake”
Highlighted part really worths extra read here (attached auto translation) pic.twitter.com/y7p3p5vjxC
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) November 4, 2019
The article acknowledges that blockchain technology goes hand-in-hand with cryptocurrency. However, in no uncertain terms, it states that it is “not equal to speculation in virtual currency”.
Moreover, it claims that blockchain should not be used to hype up “aircoins” (a rather more polite way of referring to all cryptocurrencies that are not Bitcoin).
Blockchain is developing and regulation is needed
The article notes that blockchain is still very much in its developing stages. As such, it needs to be improved in terms of “safety, standards, and supervision”. In order for blockchain not to be used as a criminal tool for money laundering and illegal transactions, regulation is needed.
It states that regulation should be “inclusive” and “prudent” and evolve with trial and error. In order for blockchain to develop the right way, “rush and repeated construction” must be avoided.
China will lead the way in the blockchain race
In closing, the author points to the fact that China has already achieved a solid head-start in the blockchain race. Some large internet companies have already established a layout for it, and more than 20 provinces are writing policies to promote blockchain adoption.
It seems that China is gearing up to place all its bets on blockchain. However, with calls for further regulation and language like “supervision” and “severely punished”, it sounds a little ominous as to the direction Xi Jinping and his country will take – and how it will affect the lives of Chinese citizens.