Legal improvement to CBDC’s China “Cryptography Law” enforced on January 1, 2020
China has long cherished the decision to develop Blockchain and apply this technology to the issuance of ‘digital Yuan.’ And to prove its determination, the Cryptography Law will be implemented on January 1, 2020, according to Nikkei. It seems to the Chinese authorities that cryptocurrencies are an essential technology to protect national security. , and further, enhance the CCP’s control of the Internet space.
The People’s Bank of China (PBoC) strictly enforces the Cryptography law
The draft Cryptography law was enacted in October 2019. At the time, the Chinese Communist Party had vowed to lead the cryptocurrency sector.
Accordingly, the outline of the Cryptography Code is presented as follows:
“Cryptography is classified into three categories. Core Cryptography will protect national confidential information. General cryptography protects confidential information. And commercial cryptography will be used in jobs related to the information infrastructure itself.” government and people’s lives.”
As we have known for a long time, the Chinese government often controls the industry strictly, while focusing on commercial cryptography to promote the industry.
China’s first CBDC is about to be released
The Central Bank of China, the People’s Bank of China, is preparing to issue the world’s first central bank digital currency (CBDC). The currency is described as aimed at reducing the administrative burden on financial institutions and increasing public scrutiny from a financial perspective.
Blockchain may be the necessary technology to issue CBDC. Blockchain is a mechanism to store data units called “blocks” by connecting them as a chain. Personal data must be protected by encryption to avoid tampering. Advances in cryptography are indispensable for the development of Blockchain.
On the day of Cryptography, President Xi Jinping announced a policy to focus on when the country is in the development of Blockchain. The implementation of Cryptographic is said to lay the foundation for promoting Blockchain and digital currencies.
The Chinese authorities are increasingly suppressing crypto assets like Bitcoin. For this reason, it is thought that Blockchain will be spread to overseas remittances, manage production. And also distribution to prevent tampering of production and distribution process records from the place of origin of raw material.
The Chinese blockchain market in the coming years
Source: Former Cheom Industrial Institute
According to a former Chinese research firm, Former Cheom Industrial Institute, the scale of the Blockchain industry in China in 2018 was only 67 million Yuan (about 1 billion Yen). However, with the backing of the Chinese government, the scale is expected to rise to 499 million Yuan in 2022.
Cryptography stipulates that the Chinese government is responsible for setting national and industry standards for cryptography. On the impact on the company’s operations, including foreign capital, executives of Chinese companies familiar with the information sector indicated that details would not be known unless the rules Details for specific activities are disclosed.
- IMF Speaks About Their Role In CBDC Topic
- Central Bank Gold Storing In 2019 Has Broken Record Of 50 Years Ago