In 2019, China shocked most of the Crypto world when they confirmed that they would be developing their own national digital token. This came as a shock because China has been the most anti-crypto in the past and this means that over 1 billion people would soon have a cryptocurrency that united them and this has great implications both for the world economy and also for the growth of cryptocurrency. It was rumored that this upcoming token was a response to the upcoming Libra token by Facebook and speaks to the growing use of cryptocurrency in the public sphere.
Only a few days into the new year and it seems that China intends to capitalize on this progress in 2020 as they have recently rolled out a new law for cryptographic password management and this serves as part of the groundwork for the upcoming token.
While the law was first rolled out in October 2019, it is reported on January 1, 2020, that it is now legally binding. The law was passed by the Standing Committee of the 13th National People’s Congress in China and divides passwords largely into three categories which are passwords, common passwords, and commercial passwords. These are to be used to set the groundwork for blockchain implementation within China which is something their president had called for in 2019.
“In order to prevent data from being tampered with, it is necessary to protect each data with a password. The development of blockchain technology can not be separated from the progress of cryptography technology,” said an official report.
2019 saw China make a U-turn from their previous stance on crypto stands as they not only advocate for blockchain development but for cryptocurrency as well. Live testing of the digital token began in 2019 with a few select banks and it is expected to be rolled out to more provinces by the end of the first quarter of 2020. With the development of the national digital token by China, it is believed that many countries will follow in their footsteps and this could lead to global adoption of cryptocurrency as a response.