Home Business Regulation Implementation of crypto law begins in China as CBDC sets to...

Implementation of crypto law begins in China as CBDC sets to launch

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.

Muhaimin Olowoporoku
Muhaimin is a journalist and a crypto enthusiast. He believes in the Africa project and sees blockchain technology as a possible solution alongside developmental journalism


Please enter your comment!
Please enter your name here

Must Read

Security tokens, blockchain settlement draw interest from institutions: MIT Bitcoin Expo panel

Amid growing competition between providers, institutions in the traditional finance space are looking at blockchain as another way to offer value to...

Networking 2.0 at Blockchain Life 2020

Make hundreds of connections at Blockchain Life 2020 The 5th Blockchain Life 2020 returns to Moscow on April 22-23 at the unique media...

Irish drug dealer loses $57M bitcoin fortune after losing access codes

Irish Bitcoin drug dealer Clifton Collins, who has forfeited digital assets worth $57 million, has continued his trial...

Federal Reserve should produce a digital dollar, Giancarlo says

Christopher Giancarlo, the former chairman of the Commodity Futures Trading Commission (CFTC) has said that the Federal Reserve should generate digital currency.

Coinbase suspends EOS activities due to degraded performance

Owing to Coinbase degraded performance experienced with EOS, the digital currency exchange firm announced via Twitter on Saturday that...