President Xi Jinping has stated that China needs to seize the enormous Blockchain opportunities because it is essential for gaining economic advantage. The Chinese president made the statement last week during his speech at the 18th collective study of the Political Bureau.
According to President Jinping, there are arrays of Blockchain applications within China. He listed sectors such as finance, transportation, as well as job creation and poverty reduction in the country as frontiers using Blockchain in China.
“We need to take the Blockchain technology as an important and significant breakthrough for the independent innovation of core technologies,” Jinping told the committee members. The president believes that China must clarify its focus and increase investment as well as concentrate on core technologies.
Guidance and Regulation
Besides, he pushed for accelerated development of Blockchain technology and industrial innovation. It was the first time the president made an in-depth remark about the technology.
Jinping further advanced the necessity of the implementation of the laws in all the existing and future Blockchain systems. Highlighting the many Blockchain opportunities, Jinping called for quality guidance and regulation of the technology.
Consequently, one could infer from his speech that the Chinese president is passionate about Blockchain. Therefore, his advocacy for the creation of Blockchain, a platform he opines, would enhance development in areas like food and medicinal safety, education, employment, among others.
The president also mentioned some of the great benefits of Blockchain technology like data sharing and operational cost reduction. He also said that the technology would help countries like China develop their digital economies while also promoting economic and social development.
China has cracked down on some use-cases of Blockchain like issuance of tokens through ICOs, the use of Cryptocurrencies and its mining.
The Impact Of President Xi’s Speech On The Blockchain And Crypto Market
Following Jinping’s speech last week, there has been a corresponding reaction across the Cryptocurrency and Blockchain market in general. Barely 24 hours after the president’s statement, there has been price resurgence in the Crypto market.
Although there was no explicit mentioning of Bitcoin by him, Crypto investors took the statement as a bullish shift. As a result, Bitcoin is currently above $9,500 after surging almost 30 per cent.
The president’s speech has done more than just increasing public awareness of the potential and prospects of Blockchain. There have also been massive rallies of Crypto-related assets in China and across the globe. For instance, Chinese Blockchain concept stock with ticker XNET had rallied above 100% during trading sessions on Friday.
The submission of the Chinese President concerning Blockchain technology is proof that governments are beginning to warm up to the technology. Blockchain will undoubtedly disrupt our traditional system of operations, maybe not at the moment, but eventually, it will happen.
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