The last several days have been nothing but eventful for the cryptocurrency community. A few days ago, China’s president, Xi Jinping, urged the country to adopt blockchain technology to drive technological innovation. The announcement seems to have generated interest in the cryptocurrency and blockchain industry, especially within China. Shortly afterward, all cryptocurrencies experienced double-digit price increases.
WeChat, a Chinese multi-purpose app, recorded an immense surge in blockchain-related search topics on its platform. On the 23rd of October, the word “blockchain” was searched for less than 800,000 times, and Bitcoin was searched for less than 600,000 times. On October 25th, the day of the Chinese president’s announcement, there were 9.2 million searches for “Blockchain” and 1.3 million for “Bitcoin.”
China Introduces Cryptography Law
Xi’s announcement was followed by the introduction of a new cryptography law, which will go into effect at the start of 2020.
According to state media, “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 tech, cryptography is an important component of the technology. It’s often used to link sets of records, or blocks.
China seems to be more open-minded these days toward blockchain, even though cryptocurrency trading is still banned in the country. Back in August, the country announced that it would launch a government-backed cryptocurrency this November.
The Reaction Not Late To Come
Amid the rising interest, Bitcoin’s price skyrocketed over 40% to a 30-day high of $10,350. The spike was followed by the typical volatility of the crypto markets, as it came just days after the price plunged to $7,300, which was the lowest it had been since May of this year. All in all, the last few days have seen significant gains for all cryptocurrencies.
While the community contemplates the future of the crypto markets and the possible reasons for the recent move, 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 tremendous impact on the market.