Xi-Fueled Blockchain Frenzy Leads Chinese State Media Call to «Stay Rational»
Chinese state media called for calm after speculators were quick to jump on the blockchain bandwagon immediately after President Xi Jinping pushed for more research and investments into the emerging field of technology.
Bullish investors piled into related technology stocks listed in Shenzhen and Shanghai with more than 60 technology shares exceeding the daily 10 percent limit. This followed Xi’s call for development in a field he said would play a key role in the «new round of technological innovation and industrial transformation» and to accelerate efforts in order for China to achieve first mover status. Bitcoin also surged 40 percent following news of Xi’s statements.
«The future is here for blockchain, but we need to stay rational,» according to a state media commentary from the «People's Daily», which underlined the need for improved regulations in the nascent technology and its difference from the «speculative trading of virtual currencies».
The commentary followed efforts by Chinese authorities to speed up blockchain development in the country. After Xi’s statement, China’s National People’s Congress passed a cryptography law that would come into effect on January 1, 2020.
