China has officially put a new law in effect, which looks to govern cryptographic password management, as the next initiative in a masterplan to prepare for the introduction of its CBDC. 

Reported by China Money Network on December 1, the freshly in effect regulations have been deemed valid under the nation’s contract laws, following its arrival in October 2019. 

Specifically, the Standing Committee of the 13th National People’s Congress in China has approved of the new law in October last year. The law has a specific goal of categorizing passwords at large into 3 different sections – passwords, common passwords, and commercial passwords. 

The new law further aims to provide support for a smooth transition into blockchain across China. 

“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 has not revealed the official introduction time for its upcoming CBDC – which will hold the title of the first-ever state-backed digital coin, on a global scale. In 2019, the People’s Bank of China (PBoC) confirmed it has shortlisted a few specific banks that will join the live testing phase of the currency.