The cryptography bill adopted earlier by the PRC parliament officially entered into force on January 1, 2020. The document standardizes cryptographic applications and the public / private key management process.
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In addition, notes China Money Network, the new law aims to lay the legal foundation for creating a digital renminbi, which is being worked on by the People’s Bank of China.
Under the new rules, passwords are divided into threetypes: key (backbone), conventional and commercial. The Chinese government will strictly regulate the generation and use of key and regular passwords, and will also promote the development of the industry in the field of commercial passwords.
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The cryptography law was passed by the Chinese authorities inOctober 2019, shortly after the historic speech of President Xi Jinping, in which he announced the plans of the Celestial Empire to take a leading position in the blockchain sphere.
In December, Mu Changchun, head of the People’s Bank of China’s Payment and Settlement Decision Division, said the development of China’s national digital currency was in its final stages.
According to him, the electronic payment system onThe base of digital currency has already passed functional research and joint tests. After the completion of the pilot programs, the digital yuan will be credited to the accounts of commercial banks of the PRC for distribution among citizens of the country.