China implements the password law to prepare the way for its official digital currency launch. This bill was passed in October, but will take effect from January 1, 2020.

The law will provide a legal backing for the issuance of digital RMB which is based on blockchain technology. In October 2019, China passed the password law which partitioned passwords into core passwords, common passwords, and commercial passwords.

Core passwords as well as plain passwords will be strictly regulated by the Chinese government, as reported. The government is dedicated to growing the commercial passwords industry.

Since each data requires a password for its protection, the law will ensure that every data is kept safe. For the past few months, China has been aggressively pushing for blockchain adoption.

China has the highest probability of becoming the first country in 2020 to launch its official central bank-backed digital currency. The centralized digital currency has been acclaimed as a potential game-changer in the financial sector.

Some experts have stated that, the digital currency could challenge the global domination of the US dollar. The country is also likely to launch blockchain-themed exchange traded funds.

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