- China is all-in in blockchain technology. President Xi Jinping stressed that China should “seize the opportunity” and take the leading position in the field of blockchain technology.
- This news has the leading cryptocurrency surging 42%, the third largest Bitcoin spike ever in its history.
Now, the Standing Committee of the 13th National People’s Congress in China has passed a new law on Oct. 26 to regulate cryptography. The law will be implemented from January 2020, reported local news channel CCTV.
The central cryptographic agency will have a unified leadership over the national cryptographic work and will formulate major guidelines and policies for national cryptography.
The law is aimed at standardizing the application and management of passwords, promoting the development of the password business, ensuring network and information security, and improving the scientific, standardized and legalized level of password management.
The Article 9 of the law, as shared by a think tank platform, Safe Internal Reference, the state encourages the research and exchange of cryptographic science and technology, protects cryptographic intellectual property rights, and promotes the progress and innovation of cryptography and public/private key technology.
China Pushing Out Political & Legal Foundation For the Upcoming Digital RMB
Though it nowhere explicitly mentions cryptocurrency, it is focused on the application of cryptography, a component that underpins cryptos like Bitcoin.
“The key takeaway is – the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all “encrypted” behaviors, which can be VERY broad, from mining to block propagation,”
shared Dovey Wan, founding partner of Primitive Crypto.
In a nutshell, Wan notes this is about,
“pushing out the political and legal foundation for the upcoming digital RMB, which will roll out by the end of this year or early next year.”
China's move came just a few days after Facebook CEO Mark Zuckerberg during his testimony before the Congress regarding this crypto project Libra warned,
“China is moving quickly to launch a similar idea in the coming months. We can't sit here and assume that because America is today the leader that it will always get to be the leader if we don't innovate.”