Bitcoin rallied 16% after Chinese President Xi Jinping called for his country to “seize the opportunity” afforded by blockchain.

Speaking at a Politburo Committee session on blockchain technology trends Thursday, Xi told committee members:  “We must take the blockchain as an important breakthrough for independent innovation of core technologies.” However, his remarks catapulted bitcoin, already at a five-month low, into a sharp rally on Friday. The crypto touched a high of $8,800 before it cooled off and entered a sideways consolidation.

China and the blockchain

The Chinese leader pointed to the vast array of applications possible with blockchain technology. These included financing businesses, to mass transit and poverty alleviation.

“[We must] clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation,” he said.

Xi’s remarks are his first-ever in such detail on the blockchain. However, China banned all cryptocurrencies in 2017, though it is preparing to introduce its digital yuan currency.

Significantly, Xi also propounded  the innovation of “Blockchain+.” It is a technology aimed at the common people’s needs for personal development through education, employment, food, and medical security.

Senior analyst on Xi’s remarks

According to Mati Greenspan, senior market analyst at exchange eToro, Xi’s remarks had fanned bullish sentiment around the crypto industry.

“It’s bullish for the entire crypto industry, in general, when you have the leader of one of the world’s largest economies coming to embrace blockchain technology like this,” Greenspan said. “Bitcoin, as we know, is a central player in the blockchain industry.”

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