China Encourages Citizens To Embrace Blockchain But Ignore Crypto
In an article that was recently published on the Chinese state media Xinhuanet, citizens of the country and other inhabitants have been discouraged from taking part in cryptocurrency activities. Emphasis on this advice was pegged on the current surge that Bitcoin price is experiencing, since it could make the entity appear attractive to investors.
Bitcoin price has been in an upward run over the past few weeks. In the process, it conquered the previous “All Time High” price which it achieved at the end of 2017, almost three years ago. The recent bull run has generated a lot of predictions from various sources, with some projecting that Bitcoin price could grow into some hundreds of thousands in the next few years.
China is known for being proactive towards technological advancement, including in the areas of blockchain, the underlying technology of cryptocurrency. However, the distinction that the state makes between blockchain and cryptocurrency is a major aspect of the publication that has been mentioned above.
One of the reasons contained in the article as to why the public should keep its distance from Bitcoin and cryptocurrencies is because the actual reason for the current surge in Bitcoin and cryptocurrency prices is not clear. This is consistent with the usual approach of China’s government as it tries to protect its citizens from investment potholes. Bitcoin price was described as a “hype”, and the risk in trading the cryptocurrency was described to be rising “sharply” in the post.
China’s foray into blockchain technology is well known, and its efforts towards creating a Digital Currency Electronic Payment (DCEP) system is also out there in the open. This exercise has already scaled the initial stages of the pilot phase. Also, for several months running, the country has been involved in the development of a state-backed blockchain-based service network (BSN). Already integrated into this network are several public chains that include Ethereum, Tezos, NEO, EOS, among others.
Perhaps, this latest press information from Xinhuanet became necessary as a result of the increased level of activity in the cryptocurrency ecosystem. This is prompted by the recent rally in the price of Bitcoin and other cryptocurrencies. Apparently, China is reminding the public of its unchanging stand when it comes to decentralized cryptocurrencies, but at the same time preparing the ground for its own indigenous projects over which it would have total control.