China Enacts Crypto Law, ahead to Launch CBDC

China in a move to launch its central bank digital currency (CBDC) has implemented a password law, that can help the Chinese government to manage and secure the passwords in a cryptographic manner by deploying blockchain technology. The news came out via a local media outlet which is powered by AI (artificial intelligence), China Money Network on Jan 1, 2020.

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Reportedly, the cryptographic password management law provides a legal start towards the issuance of Chinese CBDCi.e., digital RMB.

China Setting the Floor for CBDC

The Peoples Bank of China is establishing a way for its CBDC very calculatedly. With the deployment of revolutionary technologies like blockchain, the authorities have revealed the internal comprehensive work which is going on for many years. In Oct 2019, the government had passed the crypto law, to set the standards for the cryptographic use cases and also unveiled the forthcoming digital RMB based on blockchain tech.

On Oct 26th, the cryptographic rule was passed by the Standing Committee of the 13th National People’s Congress in the 14th meeting.

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China Money Network, while citing the information from the Japan economic news mentioned that the crypto law has divided the password protection rule into three different categories- core passwords, common passwords, and commercial passwords.

The Chinese government is focusing strongly on the regulation of core and plain passwords and at the same time staunchly showing its efforts to nurture the industry in the area of commercial passwords.

The Chinese government is focusing strongly on the regulation of core and plain passwords and at the same time staunchly showing its efforts to nurture the industry in the area of commercial passwords. For the data privacy and to save it from being tampered, it is necessary to protect each data with a password.

In the report, the information interprets that the Chinese government adopting blockchain technology to aid the financial institutions and strengthen the administration & surveillance of their finances.

China Adopting Blockchain

The report reads the importance of blockchain technology and how eagerly China is looking forward to adopting it in a positive direction. China believes that the role of blockchain technology cannot be detached from cryptography technology to issue digital money.

“Following the adoption of the code, Chinese leaders have proposed policies to accelerate the development of blockchain technology.” China Money Network has given the reference to Japan’s economic news. Source: China Money Network

The POB while deploying the core tech of the digital era i.e., blockchain at its fullest, is in the process of launching the country’s 1st and major digital currency.

KoinPost earlier reported about the upcoming pilot of CBDC, by China’s Central bank PBOC, which was proposed to be launched at the year-end of 2019. Reportedly, to test the pilot, initially, the Central Bank-backed digital Yuan is expected to execute in two cities- Shenzhen and Suzhou.

Allegedly, the trial of the impending payment project would include the forces from the People’s Bank of China together with four major commercial banks and three major telecom giants. However, China still vetoes bitcoin (BTC) and its deployment in the country.

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