President Xi Jinping’s statement about Blockchain Adoption has created a wave in the crypto industry. It is commonly referred as the Xi Effect. At present, the whole world’s eyes are on China and the Chinese Government is leaving no stone unturned to make a mark.
Earlier, the Chinese Government released a 25 video series to educate the masses about blockchain. The latest news is Chinese Local Governments are funding the Blockchain projects. The local government of Guangzhou announced a $140 million fund. The ‘China Funds Blockchain’ is a huge turnover from China’s claim to ban Cryptocurrency in 2017.
They will sponsor 2 blockchain projects every year. If the need arises, more initiatives can be expected in the near future. Total funds for these initiatives can be amounted to 1 Billion Yuan as of now. Although the projects should not be related to the token as crypto trading in still illegal in China.
China nullifying Negative Blockchain Sentiment
In a bid to push the blockchain adoption, China is taking effective steps. The Chinese Government passed a new cryptography law effective from Jan 1st and also released informational videos. China is developing its own national digital currency, which is further proof that in some form or another, digital currency is the future.
Chinese authorities have released an app that lets members of the ruling Communist Party show their loyalty using blockchain.
How the Xi Effect is Changing Crypto Market?
Oct 24th, 2019 is now termed as Blockchain Day and this day has marked an uptrend in the crypto market. Bitcoin and Altcoin prices have increased drastically. Bitcoin, after a low week, saw a 40% surge in the price. Friday saw the Bitcoin price to cross the $10k mark. Analysts claimed Bitcoin to surge further. However, a week after the endorsement, Bitcoin is trading lower than expectations. Needless to say, Analysts are still hoping the price to rise.
Other countries like South Korea, U.S. are entering into Blockchain. The day is not far away when the Crypto industry will take over the Fiat market.