I do wonder why Xi himself would publicly come out in support of blockchain tech, but we can only assume they have something big in the works. I don't think it will be good for Bitcoin.

The digital currency is expected to be backed by China's central bank, the People's Bank of China, and is being referred to as DCEP (Digital Currency Electronic Payment).

In 2014, the central bank set up a research team to explore launching its own digital currency, in order to cut the costs of circulating traditional paper money and boost the control of money supply.

While there is still no clear schedule for the currency's rollout, details are expected to be announced very soon.

In August, China's powerful State Council announced that the city of Shenzhen — which borders Hong Kong and is a major technology hub — would serve as a pilot region to test out the currency, although it is unclear when this will happen.

If the pilot proves successful, it's expected that Beijing will release the DCEP to commercial banks and mobile payment platforms, who would funnel and distribute the digital currency to the public.