Chinese state media warns that blockchain push is not a green light for speculation on cryptocurrencies

Blockchain became a hot topic for debate after Chinese president Xi Jinping appealed for greater urgency in its development

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Representation of the Bitcoin virtual currency seen on a PC motherboard in this illustration picture. Photo: Reuters

Published: 7:00pm, 4 Nov 2019Updated: 7:00pm, 4 Nov 2019

Chinese state media People’s Daily has published a commentary stressing that while blockchain can help provide the breakthroughs needed to overtake competitors it should not be compared to cryptocurrencies, which China banned in 2017.

The commentary, which comes a week after Chinese President Xi Jinping called for more research and investment into blockchain, emphasised that the opportunity brought about by blockchain did not mean people could speculate in cryptocurrencies.

“The group study session of the Central Politburo of the Communist Party of China has stressed [the importance] of blockchain and opened up the imagination space for the development and application of it,” People’s Daily wrote, adding that “we also need to be rational.”

“Blockchain technology innovation does not mean speculating on virtual currency, we should prevent the use of blockchain to speculate on scam currency.”

Blockchain became a hot topic for debate after Xi appealed for greater urgency in its development. The technology would play “an important role in the next round of technological innovation and industrial transformation”, Xi told members of the Politburo last month.

China outlawed bitcoin and other cryptocurrencies in 2017. Last year authorities shut down numerous blockchain-related news accounts on the WeChat social app and banned hotels in downtown Beijing from hosting events promoting cryptocurrencies, as part of a renewed crackdown on activities related to digital money.