According to local reports, authorities in China are pressing individuals and businesses to embrace the potential of blockchain technology while ignoring the role of digital currency. In response to a surge in BTC’s price in recent weeks, authorities are looking to dampen the apparent appeal of speculating on cryptocurrencies, highlighting the market’s lack of transparency and volatility. As China closes in on launching the digital yuan, the authorities are discouraging the use of other cryptocurrencies.
Chinese authorities encourage the use of blockchain technology.
Around the same time last year, Chinese President Xi Jinping had urged the country to take the lead in blockchain technology. China has been at the forefront when it comes to adopting the latest technology like blockchain. However, the Chinese government has been clear to distinguish between the unstable fundamentals of digital currency tokens and the revolutionary power of blockchain technology, which is already shaping systems and innovations across the country, both in private and public sector use cases. The authorities reportedly said, “the actual reason for the current surge in Bitcoin and cryptocurrency prices is not clear.”
China gears up to launch the national digital currency.
The People’s Bank of China has been working on the digital yuan for the last five to six years, and it is now very close to issuing it to the general public. The central bank-backed digital currency dubbed as DC/EP (Digital Currency Electronic Payment) is being trialed in different cities. As reported earlier, Suzhou municipal government said that they are giving away RMB 20 million to residents via a lottery. A total of 100,000 digital red packets, each containing RMB 200 ($31), will be distributed to residents this week, the eve of the so-called Double Twelve shopping festival.