Last week, Chinese President Xi Jinping called on the country to accelerate the adoption of blockchain technology to stimulate innovation and industrial transformation. Since then, interest in local blockchain companies has grown significantly.
The stock market shares of Chinese blockchain companies have been enthusiastically traded. Most have reached the maximum limit of 10% allowed to be traded in one day.
Interest in blockchain companies
An explosion of interest for Bitcoin and blockchain is evident in the search data on WeChat. On October 23, the term blockchain recorded 777,000 searches, while Bitcoin recorded 572,000.
The day after the presidential statement, searches exceeded 9.2 million for blockchain and 1.3 million for Bitcoin.
Yesterday, the head of the technology department at People’s Bank of China (PBoC) asked banks to step up their application of blockchain technology in the field of finance. The news was published by Reuters, and crypto analyst Dovey Wan reported:
“China Merchant Bank has just announced that it has invested in BitPie, the longest-running Bitcoin wallet and most users in China.”
The crypto industry has received a boost from China
Analysts have linked the rise of cryptocurrency prices with this rise in popular interest. Bitcoin grew sharply to over $ 10,000, stabilizing later at around $ 9,500.
Most altcoins have increased over 10% in one day
The Blockchain Tron (TRX) platform, which was previously under intense investigation by the Beijing authorities, also benefited. The TRX price increased by over 25%.
The evolution of interest in blockchain in China seems to confirm Mark Zuckerberg’s statements to the US Congress. He warned that the US will lose its competitive advantage over China if measures are not taken to stimulate innovation in the blockchain industry.
A former Chinese official said the Central Bank of China will probably be the first to issue the first national digital currency and that the Libra will fail massively.
At the Bund Summit in Shanghai, Huang Qifan, former deputy director of the Financial and Economic Affairs Committee of the Chinese Congress, said:
“I think the technology is getting more mature and it is very likely that the central bank of China will be the first to issue a national digital currency.”