VeChain charts 23% weekly growth as Chinese officials talk usage post-epidemic

VeChain is riding a strong tailwind on favorable developments out of China.

The price of VeChain extended its rally on Wednesday, building off a solid week of gains following discussions with Chinese government officials centered on a post-epidemic health response.

VeChain rose 2% on Wednesday to reach $0.011669, according to CoinMarketCap.

At current values, VeChain has a market capitalization of $751 million.

The cryptocurrency's uptrend appears to have coincided with a meeting of high-ranking officials from China's Hubei Province, VeChain and DNV GL Global, a global risk management firm, early last week.

DNV GL proposed a four-pronged approach to public health management in the wake of the epidemic, including an "Internationally leading blockchain-based self-risk management" platform.

In an accompanying report, DNV GL senior vice president Kang Wenyu said the "Prevention and control of epidemics" requires a coordinated approach to health management.

"The new environment requires an innovative management model. VeChain's blockchain technology can ensure the transparency, security, and credibility of all critical information, increase the cost of data fraud to infinitely high, and minimize the cost of supervision."

Launched in 2015 by Sunny Lu, VeChain is widely regarded as the leading enterprise supply chain management platform leveraging blockchain technology.

Possibly as a natural extension of its close ties with Beijing, VeChain is not a fully decentralized platform.