China passes cryptography law as it shores up support for digital currency

On Saturday, a China’s pro-CCP backed state media Xinhua report revealed that the Chinese parliament had rubberstamped a new legislation on cryptography as a broad-based push towards blockchain-based currencies

by Sourav D
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China passes cryptography law as it shores up support for digital currency

On Saturday, the 26th of October 2019, a China’s pro-CCP backed state media Xinhua report revealed that the Chinese parliament had rubberstamped a new legislation on cryptography as a broad-based push towards blockchain-based currencies, as the world’s second-largest economy has been drawing up a plan to launch its own digital currency.

Meanwhile, followed by the Xinhua report published late on Saturday (October 26th), several industry analysts were quoted saying that Beijing’s planned new digital currency would have similarities to Facebook Inc. proposed Libra coin, while the coin would be able access across China-based major payment processing platforms such as Alipay and WeChat, a senior official of People’s Bank of China (China’s Central Bank) said later last month.

On top of that, referring to China’s new cryptography law, which is scheduled to come into being as early as by January 1st, 2020, Saturday’s (October 26th) Xinhua report said citing Parliament, “(The Law is) aimed at facilitating the development of the cryptography business and ensuring the security of cyberspace and information,” adding that the newly passed legislation in the Chinese parliament over cryptography would prop up supports for application and research of science and technology on Cryptography while ensuring complete confidentiality.

Nonetheless, as Facebook’s planned launch of its digital currency Libra had ratcheted up concerns among financial policymakers worldwide, a new digital currency backed by the Chinese government would likely to face off similar kind of reactions over critical issues likes of money laundering, given the extent of digital currency’s en-masse cross-border reach.

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