China Enacts New Crypto Law In Run-Up To CBDC Debut

The latest cryptocurrencies news show that China formally implemented a law which governs cryptographic password management as part of the pre-release plans for its central banks digital currency (CBDC). An English language news media outlet named China Money Network showed that China enacts the new cryptocurrency law and that the latest regulations have become legally binding following the unveiling in October last year.

As we reported in the news before, the Standing Committee of the 13th National People’s Congress in China passed the crypto law on October 26. According to it, it divides the passwords at large into three distinct categories including passwords, common passwords and commercial passwords. All of these efforts that China enacts aim to boost the transition to blockchain technology.

“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,” China Money Network wrote with a reference to a report coming from the Japanese media outlet Japan Economic News.

We haven’t seen a formal release date for the CBDC by China yet. This will be the first state-backed cryptocurrency on the world stage.

What we saw in the altcoin news was the People’s Bank of China (PBoC) late last year which confirmed that it would start live testing of the currency with select banks before 2020 came to our doorstep.

What’s interesting is the fact that Beijing’s sudden public praise of blockchain sparked a wave of enthusiasm that ricocheted across the crypto markets. Bitcoin also surged as a result and the China-based altcoins delivered considerable growth over a short period of time.

At the same time, we could see that state controlled media stressed that the endorsement was not that discouraging for authorities who tried to slack the strict ban on cryptocurrency trading which has been in place since 2017.

Meanwhile, the market news now show that BTC started the year above $7,200 and ETH is above $130. Ripple’s downtrend lately has been recovered with daily gains of 1%, too, and the best performer in the top 10 is Bitcoin SV (BSV) which managed to add 2.41% to its price overnight, reaching $99.