Recently, a single speech had lit a bonfire, which very well may have caused a chain reaction that would ripple across every newsfeed in the world.
First reported by China's Xinhua news agency, the President of China had spoken to the country's Central Committee concerning the use of the Blockchain. President Xi Jinping endorsed the use of the Blockchain, and to "seize the opportunity", as a necessity to help elevate China's leadership in technology, and to adopt it further in China's future development.
Bullish for Bitcoin?
The President spoke highly of the Blockchain, and its ability to transform China from where it presently stands. He noted that the technology afforded by the Blockchain could help further advance China's infrastructure, and to help improve the quality of life for the country's 1.4 billion citizens. This may very well act as a precedent, as China is preparing the framework for their own state-backed digital currency.
Awoken from their slumber, traders from across the Western Hemisphere had pumped up the price of cryptocurrencies, after the Xinhua report was published. In 24 hours, the price of Bitcoin had surged 40% from its recent 5-week low. It was noted to be the 4th largest gain in its brief history.
Furthermore, since President Xi's speech was first reported, there has been further development from China. It's parliamentary body, the National People's Congress, had approved the implementation of a new cryptography law, which will take effect starting in 2020. On another note, China's foreign exchange regulator is even studying the effects of Blockchain technology in the forex space, to regulate and open up its financial and economic infrastructure.
This all comes amid escalating pro-democracy protests in Hong Kong. With more people taking sides to express their frustration and concerns for the city's future; the streets are awash with blood, tears, and endless destruction. From an economic view, more of Hong Kong's citizens are buying up cryptocurrencies to hedge against the chaos griping their daily lives. As of now, the political turmoil has brought along a premium in cryptocurrency prices compared to the rest of the world, as the local economy continues to suffer.
What does this mean for crypto?
Well firstly, this news is a U-turn from the world's second largest economy. Only a few years ago, China had put a stop to much of the country's development in the nascent cryptocurrency industry. Further increasing its crackdown on fraud, China banned ICOs, blocked access to exchanges, and handicapped cryptocurrency miners - which is still in effect today.
It's worth noting that President Xi's endorsement for Blockchain technology had no mentions of cryptocurrency. Thus, there is not yet any affirmation that cryptocurrencies, like Bitcoin, or Ethereum is welcomed in China. Besides, it would compete strongly against the deployment of a digital Yuan.
However, cryptocurrencies are built on the Blockchain, and the 2 have always been paired with one another; side-by-side, and rarely separated. The Blockchain is the ecosystem where cryptocurrencies thrive; and cryptocurrencies provide life and sustenance to the Blockchain.
Any development on the Blockchain would eventually trickle over, to further catalyse the evolution and global recognition of cryptocurrencies. As our increasingly globalised, and commoditised world becomes more acquainted with the advantages afforded by the Blockchain, there will be the need for cryptocurrencies to help power it.
Whether these systems become critical components to the economy, infrastructure, healthcare, education, agriculture, or the industries of the world - it is a necessary and inevitable evolution that must follow through.
The world's powerful institutions have already been adopting their machinations, and the people behind them, to the Blockchain. While boardroom accountants may bemoan the time, energy, and cost required to transition themselves; even they must confess to the noteworthy upsides that the technology would bring.
The peoples from around the globe are also becoming more aware, as to how the Blockchain and the cryptocurrency may improve their lives. Wealth generation, and speculation aside, these technologies have the ability to transform the simple things in our day-to-day.
It empowers the further democratisation of our society, such as unadulterated access to information, knowledge, and privileges.
It empowers the technology that we use to become more secure and anonymous, and keeps prying eyes away.
It empowers every person, regardless of whoever, or wherever they may be, to have equal and fair access to finances.
It empowers our civilisation to be more robust and trustworthy; free from any censorship, manipulation, or centralised control.
These are the promises that the Blockchain, and cryptocurrencies have undertaken. It's the reason why I remain (cautiously) optimistic on their prospects in the future.
Images credit to Shutterstock and Twitter.