Chinese media urged citizens not to succumb to the hype around Bitcoin
Chinese news agencies Xing and Xinhua urged citizens not to succumb to hype around Bitcoin, and the government to focus on the development of blockchain.
Journalists from China’s state-run news agency Xinhua and Sina said the recent Bitcoin bull rally has no clear explanation. Last week, the exchange rate of the first cryptocurrency reached its maximum mark in three years, exceeding $19 860 at most trading platforms, but Bitcoin could not overcome the historical maximum of 2017 years.
According to employees of these Chinese press centers, trading in bitcoin and other cryptocurrencies is a risky method of investment, which generates only uncertainty. At the same time, many cryptocurrency analysts make sky-high forecasts about hype Bitcoin. For example, analyst Willy Woo recently said that BTC will reach at least $200 000 in a year.
Blockchain technology, in their opinion, is “on the right track,” it has many practical applications, and in the future people will be able to use it in different industries. Local media urge the authorities to focus on unlocking the potential of this technology, and for this you need to work out special regulatory provisions. According to Chinese journalists, technological progress goes hand in hand with clear regulation.
A similar view was recently expressed by PayPal CEO Dan Schulman, saying that no industry will be able to fully develop without cooperation with regulators. However, Shulman meant cryptocurrencies, not blockchain.
Meanwhile, the Chinese government continues to push the boundaries of the use of the digital renminbi. In October, the People’s Bank of China (NBK) published a bill giving the digital currency from the NBK legal status. Last month, the Central Bank of China announced that it plans to open a test zone of free trade in Beijing, where the digital yuan will be tested.
First of all, this state cryptocurrency is aimed at developing retail payments in the country and preventing dollarization of the economy. It is no coincidence that the head of the US National Intelligence, John Ratcliffe, called the digital yuan a threat to US economic security.
