China has officially implemented a law governing cryptographic password management as part of its pre-release plans for its central bank digital currency (CBDC).
02 January, 2020 | AtoZ Markets – China introduces a password law on 1 January, 2020 to pave the way for digital currency. The objective is to foster the core technology of the blockchain technology. Also, it will provide a legal basis for the issuance of digital RMB based on blockchain technology.
China Implements Password Law
The 13th NPC Standing Committee in China passed the cryptography law on 26 October. This law divides passwords into three separate categories:
- Core passwords
- Common passwords and
- Commercial passwords
Also, it aims to ease China’s transition to blockchain technology. a report from the Japanese media Japan Economic News wrote:
“In order to prevent data corruption, it is necessary to protect each data with a password. The development of blockchain technology cannot be separated from the progress of crypto technology.”
Moreover, The Chinese government will strictly regulate basic passwords and regular passwords. It also committed to promoting the industry in the area of commercial passwords.
China Digital Currency
The People’s Bank of China is planning to launch the first digital currency. However, this initiative is seen as an attempt to ease the burden on financial institutions and strengthen the oversight of its finances.
Following the adoption of the code, Chinese leaders have proposed policies to accelerate the blockchain development. The report said:
“Indeed, the implementation of cryptography will promote the development of blockchain technology and digital currency to lay the foundations.”
The Chinese government is stepping up to suppress cryptocurrency assets such as bitcoins. The People’s Bank of China (PBoC) earlier confirmed that it would start testing the digital currency with some banks before the start of 2020. China has not yet set a formal release date for its CBDC.
Earlier AtoZMarkets reported that China could launch its digital currency in the next 6 to 12 months. That could become a challenge to the global dominance of the US dollar, according to fund manager Edith Yeung.
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