China state paper urges calm after blockchain stocks, bitcoin soar

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SHANGHAI (Reuters) - Chinese state media urged investors to remain rational and not equate Beijing’s support for blockchain as a boost for virtual currencies, after comments by Chinese President Xi Jinping drove up shares in blockchain-related firms and the price of bitcoin. Xi said last week that China should accelerate the development of blockchain technology, a digital ledger that forms the backbone of many cryptocurrencies such as bitcoin. His remarks sparked a rush into the shares of firms engaged in, or believed to be engaged in blockchain or digital currency-related businesses. “Blockchain’s future is here but we must remain rational,” the People’s Daily newspaper, which is published by China’s ruling Communist Party, said in a commentary late on Monday. “The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies,” it said. The government cracked down…

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