Blockchain frenzy in China after President Xi’s comments

China’s President Xi’s comments on blockchain technology had a ripple effect across the nation. All of a sudden, there were universities offering blockchain courses overnight and local initiative for blockchain had already been established. The local media also reported the comments as front page.

Blockchain technology is making waves in China with all the major news outlets reporting on how it can be of importance to the economy. This is after China’s President Xi Jinping called for the adoption of the technology, stating that China must seize the moment and push for blockchain adoption.

It is worth noting however that China is still opposed to cryptocurrencies. President Xi’s comments were not directed at the adoption of cryptos. This is because it would compete with renminbi, China’s fiat currency, something president XI would never want to see happening.

Xi’s comments Effect on the blockchain market

President Xi’s comments must also have had an effect on the markets. Xunlei Ltd, a Chinese company investing in cloud computing and blockchain, for instance, had a 107 percent gain in the market just 24 hours after the comments.

It was also worth noting that just after the comments, the Bitcoin had a $3,000 rise when the markets closed. Although this might have had nothing to do with the president’s comments, a lot of people speculated that the comments might have triggered the rise in price for the cryptocurrency.

Universities were also on the frontline pushing for the adoption of the technology after the comments, with some going as far as offering courses. After the news broke out, there were some universities that were already promising on the prospects of offering degree courses overnight.

There will also be a local initiative for blockchain-related education. This will help push for the adoption of the technology much faster. It will also help many schools in tailoring courses that emphasize on the blockchain technology.

The fact is that China has still a long way to go in the blockchain business. However, they are making steps in trying to closing the gap between their level of expertise and the international market. They also do not acknowledge the cryptocurrencies, but with time, investors can be hopeful that they will come around and adopt it.

Blockchain versus DLT – what’s the difference?

A $706 million market worldwide in 2017 after 10 years of being available, the blockchain market has evolved rather slowly. Its biggest use has thus far been to hide the money of criminals and terrorists. After this inauspicious beginning, it is on the cusp of phenomenal growth, ready to reach $60 billion worldwide as it creates new digital economic infrastructure.

Moving past a nefarious history, the DLT-based market moves into rapid growth mode as the digital economy takes hold. As the banks and finance industry move into the modern age of real-time transaction processing, blockchain is a core enabling technology.

There are two big distinctions between DLT (distributed ledger technology) and blockchain depending on where you sit on the Bitcoin vs. blockchain spectrum. Some qualify Bitcoin-style blockchains as largely superior to and more innovative than their distributed ledger counterparts while others qualify DLT as more useful for everyday commercial purposes.

Stay informed and join the conversation.

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