China’s President Xi Has ‘Credentialized’ Cryptocurrency, Says Novogratz

China’s President Xi Jinping gave credibility to blockchain and crypto by calling the country to accelerate blockchain adoption, said Galaxy Digital CEO Mike Novogratz. The cryptocurrency investor delivered his remarks speaking at the Reuters Global Investment Outlook 2020 Summit in New York on Nov. 5.

Xi “just credentialized crypto and blockchain”

Michael Novogratz, founder at crypto investment bank Galaxy Digital and a major Bitcoin (BTC) bull, believes that the Chinese president’s announcement in late October triggered the recent surge in Bitcoin’s price. 

By urging China to embrace blockchain technology for the sake of the country, Xi “just credentialized crypto and blockchain,” Novogratz stated.

On Oct. 24, Xi expressed his positive stance on blockchain technology at the Politburo Committee session on blockchain technology trends. The president emphasized that the adoption of integrated blockchain technologies is key to promoting tech innovation and industry transformation.

China opens to the industry after years of skepticism

Subsequently, Chinese state publication the People’s Daily reportedly clarified that Beijing’s positive stance on blockchain technology should not be interpreted as support for cryptocurrencies such as Bitcoin. 

Despite the agency’s warning on “speculation,” China has just made another step in favor of cryptocurrencies on Nov. 6 by confirming that Bitcoin mining will not be an undesirable industry in the country.

China’s U-turn comes months after the National Development and Reform Commission of China revealed its plan to eliminate crypto mining in the country. 

While cryptocurrency trading is still formally banned in China, the Standing Committee of the 13th National People's Congress in China passed a new “crypto law” on Oct. 26 that will take effect on Jan. 1, 2020. The new legislation stipulates new standards for the application of cryptography and the management of passwords in the country and implicitly relates to cryptocurrency regulations.

In late October, an exec at the Chinese economics think tank, China Center for International Economic Exchanges, predicted that China’s central bank will be the first to launch a digital currency successfully.