China enforces law overseeing cryptographic password management to pave the way for digital currency

China has officially enforced the oversight of cryptographic password management laws within the boundaries of the central bank’s digital currency (CBDC) implementation plans.

China-blockchain
Image via pymnts

As of January 1, China has a new Password Law that is supposed to help serve as one of the nation’s main tenants introducing the last digital currency. The law was approved in October and enforced at the beginning of the new year and established legal definitions for different types of passwords, according to China Money Network. They are now included in one of three categories — core passwords, common passwords, and commercial passwords.

China will enforce the Password Law to pave the way for digital money. The goal is to promote the core technology of digital era Blockchain technology and provide a legal basis for the issue of Digital Yuan based on blockchain technology.

The People’s Bank of China is preparing to launch the first digital currency of any major nation. The move is seen as an attempt to ease the burden on financial institutions and strengthen their financial oversight.

Pointing to a Japanese news outlet Japan Economic News, China Money Network emphasized the importance of cryptographic technology. To prevent data from being tampered, it is necessary to protect each data with a password. The development of blockchain technology cannot be separated from the advancement of encryption technology.

In the last leg of 2019, the People’s Bank of China (PBoC) has confirmed that it will begin real-time currency testing with selected banks before the start of 2020.

Beijing does not expect the blockchain’s endorsement to cause optimism about optimism that has a positive impact on the cryptocurrency market.

Bitcoin rallied, while altcoins based in China rose in a short span of time.

At the same time, state-owned media emphasizes that approving blockchain technology does not mean reducing the ban on cryptocurrency transactions made in September 2017.

Penghua SZSE blockchain 50 trading open index securities investment fund

In December, the country witnessed the advent of new financial means that are even more significant for the blockchain space. An application has been submitted to the Shenzhen Stock Exchange (SZSE) for a Penghua SZSE Blockchain 50 Trading Open Index Securities Investment Fund. If approved, this fund will be the first blockchain transaction investment fund in China.

SZSE also launched the Shenzhen Stock Exchange Blockchain 50 Index on December 24. According to China Securities Network, Index uses companies on Shenzhen Stock Exchange’s listed companies related to the upstream and downstream of the blockchain industry as a model space, including hardware, technology and services, and blockchain applications. Among them are Ping An Bank, Midea Group, Zixin Pharmaceutical, Guangdian Express, SF Holdings, Suning Tesco, and other applications.

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