In the last few months, there has been great attention to the country of China regards to blockchain and cryptocurrency seeing as there has been the announcement of the upcoming national digital token which some believe is a direct response to Facebook‘s upcoming Libra token. Its attitude towards blockchain does seem to be rather healthy as its president recently called for more blockchain innovation as a means to develop several sectors. This could be the starting point for more development in that sector across the country.
Now, on October 26, 2019, the Standing Committee of the 13th National People’s Congress in China year has passed the law regulating cryptography within the country which will take effect from January 1, 2020. This is one of the first laws that is being passed in China that references cryptography, which is one of the underlying processes of cryptocurrency creation.
This new law’s purpose is to set standards for the public use of cryptography as well as the management of passwords within the country. This new law also establishes a central cryptographic agency which will manage cryptographic works for the public, set guidelines and issue standards that will be followed with in the industry.
The draft of the law was first published in May 2019 and gives an idea of what this new regulation will mean for the industry. According to some, it is being used to lay the foundation for the upcoming national cryptocurrency, though an official time table has not been given for it. Either way, it is clear that the Chinese government is beginning to give more attention to cryptocurrency, particularly its own.
One person who has spoken out about the upcoming Chinese is a currency is Mark Zuckerberg at a recent hearing at US Congress to defend Libra. According to him, China is not slowing down on the plans to have their own national cryptocurrency and this could pose threat to the US’s financial dominance and this is why a token such as Libra is required.
“China is moving quickly to launch a similar idea in the coming months. We can’t sit here and assume that because America is today the leader that it will always get to be the leader if we don’t innovate,” he said.