China passes blockchain and cryptography laws

The last couple of days have been eventful in the Chinese National People’s Congress, as the party passed two important regulatory bills relating to blockchain and cryptography laws.

In an official announcement, Xi Jinping, China’s President, claimed that the country would focus on becoming a blockchain leader globally. 

Blockchain and cryptography laws

The adoption of these two new bills is a significant step towards a more welcoming regulatory environment. This has led industry experts like Dovey Wan, one of the founders of Primitive Ventures, to believe that China might be working towards a central bank digital currency (CBDC).

In his speech, President Xi Jinping also addressed the fast-growing blockchain industry. He pointed out that blockchain technology is now entering a variety of fields, which means that it will eventually dominate the market.

To push China forward, the President is looking to make the country a blockchain industry leader.

Aside from blockchain technology, Congress also passed a cryptography bill, which focuses on the regulation of password management and the security industry.

According to the official announcement, the Cryptography Law will aim to boost the password industry, while guaranteeing security for users. The law also focuses on personal data protection and network security.

China and cryptocurrency

While cryptocurrencies are still not widely accepted at a governmental level, China is actively working on using blockchain technology and its benefits.

Recently, a job posting was issued by the Chinese central bank, which detailed that the institution is looking to hire at least six specialists in the digital currency field. This is another sign that China might be on the verge of launching its CBDC.

The introduction of blockchain and cryptography laws will make it easier for the government to become a leading force in the field.