Breaking: China Gears Up For Digital Yuan, Passes “Crypto Law”

China Bitcoin

China’s National People Congress has passed the “crypto law”. The news was shared by Dovey Wan, founding partner of Primitive Crypto. 

Cryptographic Law to Come in Effect Starting January 2020

Source- Twitter

The 14th meeting of the Standing Committee of the 13th National People’s Congress was held on the 26th and the committee voted to pass the cryptography law. The law will be in effect on January 2020.  The newly passed law aims at standardizing the application and management of passwords. Furthermore, it will help in promoting the development of the password business, ensuring network and information security, and improving the scientific, standardized and legalized level of password management. The committee is yet to roll out the final version and has provided for a draft version. 

Source- Twitter

Key Highlights of the Cryptographic Law

Per the draft version, the central cryptographic agency will be having unified leadership over national cryptography work. It will look into the formulation of policies for national cryptography. The version is a pretty long one and will be delved upon the committee once again tomorrow. Interestingly, it is the first law specific abt cryptography, private/public key management and information security-related matters.

Will PBOoC Make its Own Digital Currency?

In July 2019, The People’s Bank of China (PBoC) announced its plans to create a cryptocurrency to be used both locally and possibly, globally. The news came after China reportedly decided to boycott the Libra project in its region which led to a chain reaction and instigated other countries like the US and United Kingdom to follow the same suit.

The groundbreaking announcement is surely a harbinger for the coming of Digital Yuan. Per the Chinese government’s official website, 

China does not recognize cryptocurrencies as legal tender and the banking system is not accepting cryptocurrencies or providing relevant services. The government has taken a series of regulatory measures to crack down on activities related to cryptocurrencies for purposes of investor protection and financial risk prevention. Those measures include announcing that initial coin offerings are illegal, restricting the primary business of cryptocurrency trading platforms, and discouraging Bitcoin mining. In the meantime, China’s central bank is reportedly considering issuing its own digital currency.

Will China Emerge As  Blockchain And Crypto Hub? 

Yesterday, The Chinese president, Xi Jinping in an organized study session said that the communist party should tap the distributed ledger technology for innovating and be keen on the acceleration of the same. Jinping went on to praise blockchain in the meeting with the political bureau of the party’s Central Committee. The latter seeks to enhance the current state and catalyze the development of blockchain technology. It is interesting to note that it is the first time the party’s central committee has come together and decided to collectively study blockchain. 

Will China lift its “crypto” ban in the near future? Let us know, what you think in the comments below!

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