The weekend was buzy in the cryptocurrency market. The approval of a cryptocurrency law by The China Congress and statements made by two Chinese government representatives regarding the blockchain took the price of the bitcoin to the heights.
To get an idea of the impact of this news, after the events, the volume of searches of the term blockchain on WeChat – China’s main messaging app – grew more than ten times in a day.
The law passed by the Chinese Congress deals with various aspects of the cryptocurrencies. Although the trade of these assets is prohibited in the Asian country, the law deals with some legal and regulatory challenges and cases of use of cryptocurrencies. The regulation comes into force on 1st January 2020.
The first statement was given by none other than China’s President Xi Jinping, calling on the country’s companies to see the blockchain as an evolutionary necessity.
The second was made by the head of Technology at People’s Bank of China, Li Wei, urging the commercial banks to develop products and services based on this technology.
After the statements, the bitcoin suffered its highest daily appreciation in 2019 – 42%. The price of the cryptocurrency came close to US$10,000, but then it suffered a small adjustment.
The market movement shows how much the price of the bitcoin is correlated with the increased acceptability of the currency. Whether it’s a store of value – as if it were digital gold – whether as means of payment or speculation.