China is taking major steps towards developing the United States in the field of Fintech, blockchain and cryptocurrency. President Xi Jinping announced that China is focused on becoming a world leader in Blockchain technology. The National People’s Congress of the country adopted the Bit Crypto Money Law- the first Bitcoin and cryptocurrency law, which will come into force from 1 January 2020.
China moves to first Crypto Monetary Law after Blockchain announcement
The cryptocurrency law includes topics such as standardizing crypto implementation and management, encouraging the development of cryptocurrency trading, ensuring network and information security, and improving the level of scientific, standardized and legalized crypto management. Although the law itself is cryptocurrency-oriented, many believe that the transition to this law is a step towards launching the Digital Renminbi (RMB), a development that will be at the center of China’s financial ecosystem.
Since China’s announcement of the crypto-money law came a day after President Xi Jinping’s announcement of Blockchain, many now expect China to embrace the cryptocurrency in the form of a Central Bank Digital Currency (CBDC) that it can finally control.
China strategizes digital money plans by observing world developments
The crypto agency to be established in this context will be directly linked to the leadership of the Chinese Communist Party (CCP) and will be responsible for establishing basic rules and policies in coordination with the main national security tasks. The bill protects cryptographic research to promote various cryptographic innovations and public/private key technology. The bill also promises to prevent illegal data occupation with cryptography that could jeopardize the interests of national security and the social community. When the new law comes into force- the development of cryptographic projects, the use of mixed algorithms and even technology will fall within the jurisdiction of the CCP; this means that someone dealing with any crypto project must comply with standards set by the state.