In an attempt to ensure the security of cyberspace and information, the Chinese government recently passed a new law on cryptography. This paves the way for the country to release its own digital currency, which is aimed at cutting costs of circulating paper money and to help policymakers control the money supply
The new cryptography law, which comes to effect on January 1, 2020, is designed to assist the development of the cryptography business and enhancing the security of cryptocurrency.
In 2014, China’s Central Bank set up a research team to work on its digital currency to cut the costs of traditional paper money and to control the money supply. The new digital currency can be used across major payment platforms like WeChat and Alipay, according to the Central Bank.
Previously, a wide range of uncoordinated laws and regulations governed the Internet in China. The Chinese government implemented a contentious new law in 2017, which allegedly imposes strict requirements on data storage and scrutiny. The proposed law, which was approved in November 2016 by China’s National People’s Congress, prohibits service providers from recording and selling the personal information of Internet users. In the case of these prohibitions being violated, it also gives users greater information security rights, including requirements that their data be wiped clean.
International trade organizations opposed the new Chinese regulations, at a minimum pushing for a delay in implementation, arguing that the new rules would hamper business activities on the Internet in China.
In an attempt to prevent any damage to global trade services, the U.S. asked China not to implement its stringent cybersecurity law. In a two-page document submitted for debate at the World Trade Organisation (WTO) Services Council, the U.S. claimed that China’s new cybersecurity norms can have a huge impact on cross border services supplied through a commercial presence abroad.