As the bell of a new year stroke, China implemented a new law governing the cryptographic passwords.
This law came into effect ahead of the launch of the People’s Bank of China-backed digital currency, which is expected to hit the market this year.
Reported by the local news outlet China Money Network, the new law has categorized crypto passwords into three distinct types – core passwords, common passwords, and commercial passwords.
The government of the country will strictly regulate the core passwords and the common passwords, while with the third category of passwords, it will nurture the use of digital currency in the commercial sectors.
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The Chinese government introduced a bill of this recently implemented law in October last year, which was passed in the same month.
Bejing’s push to adopt blockchain technology
The new law is expected to strengthen the base of cryptographic technology as the country is mulling to adopt blockchain technology in many sectors.
Moreover, the central bank is also working on its central bank digital currency (CBDC), and though the launch was anticipated for late last year, it was delayed until 2020. Without any official details, multiple officials from the monetary regulator came out to tease about the upcoming currency, stating that the digital version of the yuan will be centralized and controlled by the central bank.
PBoC is gearing up to start a trial of its digital currency soon, along with some hand-picked partners from the banking and technology industry.
When launched, the digital yuan will be the first central bank-backed cryptocurrency. Though multiple island nations like the Marshall Islands also launched and developed their own digital currency, they mostly fall under the category of stablecoins rather than a CBDC.