Chinese state-owned media has warned investors not to interpret Beijing’s support for blockchain as a support for cryptocurrencies, Reuters reported on 29 October.
According to the report, Chinese news outlet the People’s Daily, which is under the direct control of the Communist Party of China, has published material to remind investors that the Chinese President’s support of blockchain technology does not mean that they should invest in cryptocurrencies. The news outlet wrote:
“Blockchain’s future is here but we must remain rational. The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”
After the Chinese President, Xi Jinping, vowed to make the country a leader in blockchain tech last week, investors in the country rushed into the shares of firms engaged in blockchain, which resulted in fintech companies soaring in price at market opening this Monday.
Reuters further reported that the independent Shanghai Stock Exchange warned traders, saying:
“For any blockchain-related (topics), we ask listed companies to make statements based on facts and not make any exaggerated claims or create vicious hype.”
The hype around blockchain companies could have also came from the news that China has had over 500 enterprise blockchain projects registered in the country in the past year.
The Chinese government is also trying to regulate the new technology, having signed a new law which will govern various aspects of blockchain technology.
The People’s Bank of China has recently released a new verification platform, called “Certification of Fintech Products”, which it will use to license 11 types of financial technology software and hardware that are broadly used for blockchain services and digital payments.