Official Chinese Communist Party Outlets Praise Cryptocurrency Investments

News / 13.10.2020

Suppose you have been following the latest cryptocurrency surge. In that case, you will agree that China has played a leading role in the world of cryptocurrency, already ruling the hash rate war on the Bitcoin network. There are millions of Bitcoin traders in China, adding to the insinuation that China may go the way of Digital currency in the future.  

Just recently, Reference News (参考消息), a media outlet with long-ties with the Chinese Communist Party, published a report with the heading “Cryptoasset is the best performing asset YTD.” This headline was featured on all avenues, newspapers, online media, and TV, becoming the first time we saw such a coordinated effort. 

Although it might be difficult to deduce the real intent, it wouldn’t be wrong to say that it’s becoming harder to ignore the crypto investment market. From the looks of it, even CCP is getting its feet wet in crypto investments. Whereas at the same time, we have seen crypto assets experiencing a massive increasing tightening control in China over fx exchange at the retail level.

Is China Becoming the Leader In Blockchain and Cryptocurrency?

Recall in late 2019, the Chinese president, Xi Jinping, said that the country needs to “Seize the opportunity” afforded by blockchain technology. A few days later, the country started the process of launching its digital currency.  

The Chinese state recently created a new payment system called the Digital Currency Electronic payment (DCEP).  And experts see it as a digital version of China’s official currency, the yuan, one of the top digital currency pioneers in china; Mr. Guo thinks it might become a dominant global currency in the future.

Furthermore, we recently saw coverage on CCTV2 encouraging more adoption of China’s national digital currency DCEP, which is currently undergoing beta testing. So, the latest cryptocurrency praise from the communist party seems to be related to this DCEP bull narrative in general. 

Just last weekend, China’s southern city of Shenzhen, one of the major Chinese cities, announced that it was giving away 10 million yuan in its central bank. According to them, beneficiaries can use the digital currency across 3,389 stores capable of accepting digital currency in the Luohu district. So far, over 50,000 people have applied for the digital current valued at 200 yuan ($30).

Narender is a digital nomad & crypto writer. He's currently living in this small Himalayan village with a perfect balance of wilderness and an LTE network. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"