China’s President Xi Jinping on developing global framework for digital currency

China's President Xi Jinping states that China should actively engage in formulating a global framework for digital currency.

By · Nov 2, 2020 . 5min read

China's President Xi Jinping on global framework news

President Xi Jinping released a public statement titled “Issues on National Medium and Long-Term Social and Economic Strategies” regarding the long-term economic and social development strategy of China. He announces that China should actively engage in the formulation of a Global Regulatory Framework for digital currencies. It should also proceed to execute technological innovation. President Xi Jinping spoke about the difficulties which the nation might encounter in the forthcoming years owing to the COVID-19 pandemic. He also emphasized the modifications that should be done to counter economic losses and ensure progress.

In the above statement, the President of China further elucidates that the country needs to continue strengthening its models for the digitalization of various industrial and socio-political sectors. He asserted that for the success of this strategy, it is essential that China proactively partakes in formulating an international regulatory framework on digital currency and tax. 

Bitcoin Price rises to $14k, possibly due to Xi Jinping’s statement.

Samson Mow, the Blockstream manager, commented on his Twitter account. He stated that China is attempting to build a common standard with other nations on crypto money. Mow also said that the price of Bitcoin has increased to $ 14,000 just as Jinping made these comments.

The BTC / USD parity, which was 13,300 dollars yesterday, entered the level of 14,000 dollars. According to the experts, the price hike is the result of Xi Jinping’s statement.

Recently, China’s central bank issued a proposed banking law to legalize the digital yuan and ban any other stablecoins locally. The move intends to eliminate any digital currencies that endeavour to battle with China’s CBDC. The bill prevents any individuals or entities from formulating the yuan-pegged digital tokens that might substitute the digital yuan. The bill also emphasizes the consequences of infringing the regulations. Moreover, in October, approximately 50,000 people received a total of $1.5 million worth cryptocurrency in a giveaway organized by the government. 

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