China Passes a Password Law To Gear Up Its Digital Currency

On January 1, a digital currency password law entered into force in China, paving way for its central bank digital currency (CBDC).

As Chinese English-language news agency China Money Network reports, the digital currency law was initially passed in October last year.

Encryption lays foundation for digital currency

The law appeared in October 26 and categorized the passwords into core, common and commercial. This will help facilitate China’s transition to blockchain.

“In order to prevent data from being tampered with, it is necessary to protect each data with a password. The development of blockchain technology can not be separated from the progress of cryptography technology,” China Money Network states referencing the report of Japan economic news from December 31, 2019.

Central bank continues with testing the cryptocurrency

There is no data as to the official release of the CBDC, which will be the world’s first government-backed cryptocurrency.

Last year the People’s Bank of China (PBOC) said that it would begin testing the currency before the beginning of 2020.

When the President expressed enthusiasm about the blockchain, it echoed positively on cryptocurrency markets. Bitcoin (BTC) price rose, and Chinese cryptocurrencies gained in value quickly.

At the same time the country’s authorities noted that positive attitude to blockchain should not be regarded as slackening of 2017 cryptocurrency trading ban.

CryptoTheNews have recently shared a 2019 recap of China’s tough relationships with cryptocurrencies.