As part of preparations for the launch of the Central bank digital currency, China has started implementing crypto law governing cryptographic password.
The law is, however, aimed at enabling the development of the cryptography business and ensuring the security of cyberspace and information.
The crypto law has been passed since October 2019 and slated to begin implementation Jan1. 2020.
According to reports, the law makes provision for divided password into three categories which are core passwords, common passwords and commercial passwords.
This law will enable a more secure basis for issuing digital RMB and facilitate China’s transition to blockchain technology.
Following the implementation, the government would be in charge of regulating core passwords and plain passwords and would oversee industries in the area of commercial passwords.
A report from China read that this is to prevent data from being tampered with as the development of blockchain technology cannot be separated from the progress of cryptography technology.
Alongside this development, the Chinese government is said to be stepping up efforts to crack down on cryptocurrency assets such as bitcoin.
China continues to push for CBDC launch
With no precise date set for the launch of China’s digital currency, it continues to intensify effort for the launch of the digital yuan.
Towards the end of 2019, the People’s Bank of China (PBoC) confirmed it would start live testing of the currency with selected banks before 2020 began.
However, its launch will make it be the first state-backed cryptocurrency on the world stage as the centralized digital currency has been hailed as a potential game-changer in the world of finance.
Experts around the world, in their opinion, have claimed that the Chinese digital currency could challenge the global domination of the US dollar.
In their effort to overthrow the US dollar from its global domination, China is likely to launch blockchain-themed exchange-traded funds.
Chinese President Xi Jinping also said last year that the country should accelerate the development of blockchain technology as a core for innovation.