FILE PHOTO: a Small toy figures are to be seen in the representations of the virtual currency Bitcoin is shown in front of a picture of the chinese flag in this illustration, the picture, April 9, 2019. REUTERS/dado Ruvic/Illustration
SHANGHAI (Reuters) – Chinese state media have urged investors to remain rational and not equal to Beijing to support the blockchain as a huge boost for the virtual currency, following comments by China’s President, Xi Jinping drove shares in the blockchain-related businesses, and the price of bitcoin.
Xi said last week that China should accelerate the development of the blockchain technology, digital, general ledger forms the backbone of a lot of cryptocurrencies, such as bitcoin. His comments led to a rush into the shares of companies that are involved in, or believed to be involved in the blockchain, or digital currency related businesses.
“Blockchain for the future, it is here, however, we must remain rational,” the People’s Daily newspaper, which is published by China’s ruling Communist y, said in a commentary late Monday.
“With the advent of blockchain technology has to be accompanied by that of the cryptocurrencies, but the innovation in the blockchain technology, means that we don’t have to speculate in virtual currency for it,” he said.
The government has cracked down on the country’s cryptocurrency industry by 2017, with the regulators for a ban on the practice of creating and selling virtual currency, or tokens, or the closure of a local cryptocurrency trading exchanges, saying that they are facilitating the illegal fund raising, and the region.
Chinese officials, however, said at the time of the study, the blockchain technology has enhanced, even though Xi’s comments are the first time to Beijing was for the general public, and thrown with such vocal support behind the industry.
Beijing has been the creation of a private central bank-issued digital currency to cut out the cost of staying in traditional paper-money, and to increase policy-makers’ control of the money supply.
Reporting by Brenda Goh in Shanghai; Editing by Jacqueline Wong