With China’s rise to being one of the world’s foremost powers in the past ten years, President Xi Jinping has come to hold a lot of influence in the economic sphere. This is why his endorsement of blockchain technology is very important. China’s government typically is very restrictive on international ideas and freedoms, and retains a great deal of control over their economy. Despite previously having banned cryptocurrency exchanges, or websites on which users can make transactions, Xi Jinping’s statement on blockchain technology represents an encouraging step for cryptocurrency across the globe.
One of the most important developments in the financial world in the 21st century has been the invention and introduction of cryptocurrency. Cryptocurrency is a form of digital currency that uses cryptographical functions to allow parties to complete financial transactions anonymously and without depending on a bank. The most important feature of cryptocurrency is that it is not regulated by a central authority; rather the blockchain supports a publicly recorded ledger so it cannot be altered or tampered with. The advent of cryptocurrency has allowed for parties to engage in payments that are more secure and faster than traditional means of financial exchanges.
“We must take the blockchain as an important breakthrough for independent innovation of core technologies.” – Xi Jinping
Cryptocurrency is a highly speculative and largely unregulated market; this piece should not be construed as any sort of investment advice. However, cryptocurrency is also a very exciting new technology and advent in the world of finance. It is definitely something to watch and pay attention to over the coming months!