According to the report, the fresh regulatory framework intends to establish standards for cryptography application and password administration.
The fresh regulatory framework demonstrates the function of a central cryptographic agency designed to head public cryptographic job, establishing rules and policies for the sector.
A Chinese news media published the draft of the new law on May 7 by. The text is heavily oriented towards government centralized password administration and does not openly state cryptocurrency, even though it does fixate on cryptography, a crucial building block laying the groundwork for cryptos such as Bitcoin.
Wan elaborated as follows:
“The key take away is — the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all ‘encrypted’ behaviors, which can be VERY broad, from mining to block propagation.”
She finished off by saying that the law is creating the foundation for the forthcoming government backed digital currency, even though there is no specific date for its roll out, a Chinese official affirmed in September.
China’s President Xi Jinping has suggested the country to expedite adoption of blockchain technology. In the meantime, social media platform provider Facebook’s CEO Mark Zuckerberg cautioned that Chinese dominance in the crypto currency space could place the US dollar at risk in an attempt to convince lawmakers of his plans for the Libra stablecoin.
Zuckerberg argued “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.”