People's Daily, a news source directly controlled by the Chinese government, has recently reported China has not given its support to cryptocurrencies.
Reuters published yesterday a news in which, citing the Chinese newspaper, reported the country's authorities have warned against the speculative risks associated with cryptocurrencies, so investors should be especially careful when investing in this type of asset.
We must take into consideration that the cryptocurrency market has registered an important and unexpected rebound in recent days after Chinese President Xi Jinping said last week the country should foster blockchain adoption and become a leader in the sector.
Now, the government's news source has decided to publish an explanatory note to clarify that China does not support cryptocurrencies, and that the statements made by the country's president only refer to blockchain.
According to the publication:
"The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies."
China has been fighting against the crypto industry for several years after it decided to ban ICOs in the country in 2017. The president's recent statements have been received by Chinese crypto investors with great hope. However, the authorities have quickly made it clear that Jinping's word only apply to blockchain and not to cryptos.
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