China is introducing a Password Law at the very start of 2020 to promote digital currencies and their adoption. The ultimate goal is to allow the technology of blockchain to thrive and set a legal framework for the issue of digital blockchain-based RMB.
According to press, China passed a password law in 2019 (October) that divides passwords into three major types: commercial, common and core.
It is now known that the Chinese government will monitor strictly core and plain passwords, while supporting the industry in the area of commercial passwords.
The move is a step before China introducing its own digital currency. The Password Law will help financial institutions with the burden of overseeing cryptocurrencies.
According to press, China believes that prevention of data tampering requires each data to be “helped” by a password. In such sense, the technology of blockchain and the technology of cryptography come together to support the new project. Once the code is adopted, China is proposing policies to speed up the development of blockchain in the country.
There is no clear or formal release data for China’s central bank digital currency (CBDC). In 2019, PBoC confirmed that the Bank will start testing the cryptocurrency with select financial institutions before 2020 arrives. However, one thing is sure: China is leading the way in blockchain innovation. The latest news is that the country will be launching its first blockchain ETF.