Chinese government-controlled news agencies Sina and Xinhua urged not to fall for the hype around Bitcoin, and that the authorities should focus on the research of blockchain technologies.
Reporters from China’s state-run news agencies Xinhua and Sina claimed that Bitcoin’s recent “bull rally” has no clear reason behind it. Last week, the first cryptocurrency rate reached its highest level in three years, surpassing $19,878.
According to the staff of these Chinese press centers, trading Bitcoin and other cryptocurrencies represents a risky investment method that only creates uncertainty. Meanwhile, many cryptocurrency analysts make bullish predictions about Bitcoin. For instance, analyst Willy Woo recently predicted that BTC will sky-rocket to at least $200,000 in 2021.
Blockchain technology, according to them, is “on the right track”. It possesses many functional applications, and in the future, we will be able to utilize it in various industries. Chinese media urges the government to focus on realizing the potential of this technology. For this aim, special regulations need to be implemented. According to state-run media journalists, technological development is closely tied with strict regulation.
In the meantime, the Chinese government continues to push further the digital renminbi. China’s central bank announced last month that it plans to open a test free trade zone in Beijing where the digital yuan will go through more testing.
This state-issued cryptocurrency aims to stimulate retail payments in the country and contribute to prevent the dollarization of the Chinese economy. For that reason, it is no coincidence that US National Intelligence official, John Ratcliffe, named the digital yuan a threat to US financial security.
