The President of China Has Shown His Support Towards Blockchain Tech

At an annual academic conference held by the Chinese Academy of Sciences on Monday, May 28, China’s President Xi Jinping said in a statement that the blockchain technology behind digital currencies is a major breakthrough in the development of the world’s financial market.

"A new generation of technology represented by artificial intelligence, quantum information, mobile communications, internet of things and blockchain is accelerating breakthrough applications," Xi Jinping stated.

"Since entering the 21st century, global science and technological innovation have entered into an unprecedented period of intensive activity. A new round of scientific and industrial revolution is reconstructing the global innovation map and reshaping the global economic structure," he added.

The President’s View

The main emphasis of Xi’s speech was made on the necessity to turn China into the global hub specialized in fintech, science, and technological development. Given a high level of tense accompanying economic competition among world’s largest countries, there would be launched special high-quality labs to facilitate further exploration and development of blockchain technology, he mentioned during his speech.

However, the President gave no clear explanation on how blockchain would be implemented and used. His remark followed shortly after the country’s authorities had brought up the topic in a top-level official letter.

The Current State of the Country’s Crypto Market

It is worth mentioning, that China has successfully suspended bitcoin trading within its borders. Moreover, the government also prohibited crypto trading of new virtual coins using initial coin offerings (ICOs) last September. Nevertheless, the country is regarded as one of the largest financial technology centers in the world.

"In China, blockchain's still developing, really great," said Albert Xuan, project manager at Liaoyuan, a consulting firm and incubator for start-ups.

Given the fact there are some startups collaborating with the government, the State Council has already added blockchain technology to the country's 13th five-year economic development plan of an information technology reformation strategy.