China sets the stage for a digital currency world

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It is beginning to look more evident that China has big plans for a digital future. While it may have been opposed to cryptocurrency in the past, there are glaring signs that, on some unclear level, it will be more amenable to blockchain and digital currency before too much longer. The country’s president, Xi Jinping, made that clear during a speech last week about focusing on innovative digital technologies and the fact that China has just approved a law on cryptography adds stronger support for his assertions.

At the heart of Xi’s speech is information that can be traced to Dr. Chen Chun, a renowned academic who has been a major source of China’s innovative advances for more than 20 years. He has been extremely interested in blockchain technology since 2016 and is now the chair of Hangzhou Qulian Technology Co., Ltd. That company’s goal is to “build the core technology of the next generation of trusted value exchange network and its platform (alliance chain), and rely on it to complete demonstration for business applications and general industry solutions with financial technology.”

What has prevented that advancement, until now, is the lack of regulations in the country. However, that is now going to change with the help of a new law that was just implemented. According to a local media outlet, Xinhua, China has just implemented regulations governing cryptography, which is at the base of blockchain and digital currency. The announcement of the new law came only a day after Xi made his remarks in front of the 13th National People’s Congress and the law is expected to take effect on January 1, 2020.

The purpose of the new legislation is to provide guidance for emerging digital technologies as they continue to play a major part of China’s developing economy. The law reads, in part, “Clear guidelines and regulations are needed to evaluate commercial cryptography technologies used in the major fields related to the national interest as the current ‘loose’ system is not suitable for the industry anymore.”

As such, entities will find it easier to conduct R&D on cryptography technologies while adhering to a strict set of standards for the development of digital solutions. The new law will also be used as the foundation for new educational efforts that will promote cryptography to everyone from government officials to businesses in an attempt to get them to embrace the technology on a greater level.

This could also open the door for acceptance of cryptocurrencies that operate within the framework of established laws and regulations and which are designed specifically with that in mind. Bitcoin SV (BSV), the only digital currency that adheres to the original design of Bitcoin and which is centered on the belief that crypto needs to complement existing financial ecosystems, would be a welcome addition to China’s overall digital innovation plan. It has been developed to adhere to the same criteria the country is now establishing and can help foster the innovation China now seeks with its expanded crypto-related laws and its focus on digital solutions.