Chinese media urged citizens not to succumb to the hype around bitcoin

Chinese news agencies Xina and Xinhua urged citizens not to give in to the noise around bitcoin, and the government-to focus on the development of the blockchain.

Journalists from China’s state-run Xinhua news agency and Sina said bitcoin’s recent “bullish rally” has no clear explanation. Last week, the exchange rate of the first cryptocurrency reached its highest level in three years, exceeding $19,860 on most trading platforms, but bitcoin was not able to overcome the historical high of 2017.

According to the staff of these Chinese press centers, trading in bitcoin and other cryptocurrencies is a risky investment method that only generates uncertainty. At the same time, many cryptocurrency analysts make “sky-high” forecasts about bitcoin. For example, recently analyst Willy Woo (Willy Woo) said that in a year, BTC will reach at least $200,000.

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 are calling on the authorities to focus on unlocking the potential of this technology, and to do this, special regulations need to be worked out. According to Chinese journalists, technological progress goes “hand in hand” with clear regulation.

A similar point of view was recently expressed by PayPal CEO Dan Schulman, who said that no industry can fully develop without cooperation with regulatory authorities. However, Shulman was referring to cryptocurrencies, not blockchain.

Meanwhile, the Chinese government continues to push the boundaries of using the digital yuan. In October, the People’s Bank of China (PBOC) published a bill giving the NBK’s digital currency a legal status. Last month, the Central Bank of China announced that it plans to open a free trade test zone in Beijing, where the digital yuan will be tested.

First of all, this state-owned cryptocurrency is aimed at developing retail payments in the country and preventing the dollarization of the economy. It is no coincidence that the head of US National Intelligence, John Ratcliffe, called the digital yuan a threat to US economic security.