Within the boundaries of central bank digital currency (CBDC) roll out plans, China has officially enforced a law overseeing cryptographic password administration.
According to English media outlet China Money Network, the recent rules have turned out to be officially binding following their unwrapping in October 2019.
It can be remembered that the Standing Committee of the 13th national People’s Congress in China approved the crypto bill on October 26.
It segregates passwords broadly into three unique classifications, namely common passwords, passwords and commercial passwords, and intends to pave way for China’s shift to blockchain technology.
Pointing to a narrative by Japanese news outlet Japan Economic News, China Money Network highlighted the importance of cryptography technology “In order to prevent data from being tampered with, it is necessary to protect each data with a password. The development of blockchain technology cannot be separated from the progress of cryptography technology.”
China is yet to announce a formal launch date for its CBDC, the first state-backed crypto in the international arena.
In the final leg of 2019, the People’s Bank of China (PBoC) affirmed that it would begin real-time trial of the currency with chosen banks before the start of 2020.
Beijing’s unexpected lauding of blockchain widely triggered a flutter of optimism that had a positive impact on cryptocurrency markets.
Bitcoin (BTC) rallied, while China-based altcoins appreciated in a short span of time.
In the same moment, state owned media insisted that the approval of blockchain technology does not mean easing prohibition on cryptocurrency trading implemented on September 2017.
