December 2, 2023

The National People’s Congress of China passed a “cryptography law”

China's National People's Congress Passes 'Crypto Law'

China is doing everything to get ahead of the United States in the development of cryptocurrency.Yesterday's National People'sThe country's congress passed the "Cryptography Act", which comes into force on January 1, 2020.

The law aims to "standardize the application and management of passwords, promote the development of password management businesses, and ensure the security of the network and information." 

Although the law itself is focused on cryptography, many believe that its adoption is another step towards the launch of the Chinese digital renminbi.

This point of view was shared by Davi Wang,Founding partner of Primitive Ventures, in a recent interview with BlockTV, during which she said that the concept of “blockchain”, from the point of view of China, is inseparable from the concept of “bitcoin”. Wang also emphasized that after the president’s announcement of the country's desire to become a leader in the blockchain field, the number of requests for the word “Bitcoin” in the local search engine Baidu increased sharply.

The cryptographic agency will report directly to the government

Chinese Communist Party will be directlyResponsible for developing key guidelines. The bill encourages cryptographic research to promote various crypto innovations and public / private key technology.

With the adoption of the new law, any cryptocurrency andThe blockchain company falls under the control of the CCP, which means that anyone who deals with cryptocurrencies must adhere to the standards set by the government.

Interestingly, during congressional hearings onIn the case of the Libra project, Mark Zuckerberg said that if the US government does not allow Facebook to issue a universal digital currency, then China will do so. The very next day, Chinese President Xi Jinping announced the country's intention to become a leader in blockchain technology.

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