CCTV, a Chinese local news outlet, reports that the Standing Committee of the 13th National People’s Congress in China has passed a new law regulating cryptography on October 26 that will take effect on January 1, 2020.
As per the report, the new regulatory framework aims to set standards for the application of cryptography and the management of passwords. The new regulatory framework establishes the role of a central cryptographic agency meant to lead public cryptographic work, creating guidelines and policies for the industry.
On May 7, 2019, the draft of the law was published by a Chinese news outlet. The text is largely focused on Government Centralized Password Management and does not explicitly mention cryptocurrency, though it does focus on cryptography, a key component underpinning cryptocurrencies such as Bitcoin.
Preparing for China’s national crypto
The law is building the foundation for the upcoming Chinese national cryptocurrency, though there is no official timetable for its launch, one Chinese official confirmed in September.
In the meantime, this past week, Mark Zuckerberg warned that Chinese superiority in the digital currency space could put the U.S. dollar at risk in an attempt to sell lawmakers his plans for the Libra stablecoin.
Thus, he argued in an official statement:
“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.” Mark Zuckerberg