The last several days have been nothing but eventful for the cryptocurrency community. A few days ago, Chinese President, Xi Jinping, said that the country should be adopting more blockchain to be used for technology innovations. The aftermath of that announcement appears to be spiking the interest towards the whole cryptocurrency and blockchain industry, especially within China. Shortly after, all cryptocurrencies experienced a drastic double-digit price increase.
WeChat, a Chinese multi-purpose social media app, recorded an immense surge for blockchain-related search topics on its platform. On the 23rd of October, the word “blockchain” was searched less than 800,000 times and Bitcoin – less than 600,000. Immediately following the huge announcement from the Chinese President on the 25th, the numbers went as high as 9.2 million searches the keyword “Blockchain” and 1.3 million for “Bitcoin.”
China To Introduce A New Cryptography Law
The recent events in the country were followed by an introduction of a new cryptography law, which will be effective as of the 1st of January, 2020.
As per the official report, “the cryptography [law] is aimed at standardizing the application and management of passwords, promoting the development of the password business, ensuring network and information security, and improving the scientific, standardized, and legalized level of password management.”
While the previously published draft didn’t mention blockchain as a whole, it’s worth stating that cryptography is a significant component of the blockchain technology. It’s used to link the list of records, or blocks.
China seems to be more open-minded these days towards blockchain, even though cryptocurrency trading is still banned. In that matter, months before the President’s urge for blockchain adoption, the country announced that it would be launching a government-backed cryptocurrency this November.
The Reaction Not Late To Come
Following the rising interest, Bitcoin price skyrocketed over 40% to a 30-day high at $10,350. The spike was followed by the typical volatility of the crypto markets, as it came just several days after a severe plunge when it went down to $7,300, which was the lowest point since May this year. All in all, the last few days are showing some severe gains throughout all cryptocurrencies.
While the community is contemplating about the future actions of the crypto market and the reasons behind the recent moves, the most commonly used word for explaining the surge has been “China.” As it’s the second-largest economy in the world in terms of GDP, news from the country’s officials could have a notable impact on the market.