On January 1, the Chinese government enacted a new law that governs the management of passwords and application of cryptography. As reported by China Money Network (CMN), the bill that was introduced last October becomes legally binding on the first day of this year.
Notably, the new law is designed by the Standing Committee of the 13th National People’s Congress in China. The authors confirmed that it is part of the government’s preparation for the pre-launch of its national CBDC (central bank digital currency.)
According to CMN, the development of cryptography technology must be able to catch up with the progress of Blockchain technology. To ensure the privacy of valuable data, having a secure password is crucial.
As briefly explained by the Chinese government, the crypto law categorizes general passwords into three –passwords, commercial passwords, and common passwords. Furthermore, it also acts as a central cryptographic agency that would establish policies and guidelines for the crypto industry and would lead and monitor developments on public cryptography.
Still no specific date for China’s CBDC
While the buzz about China’s central bank digital currency has been going on for more than a year, the government is yet to announce when it will go live. Notably, the People’s Bank of China (PBoC) said last year that the state currency would enter the testing phase with selected banks before 2020. However, the world is still waiting for the official release of what would be the world’s first-ever CBDC.