Starts one more year, and here in CriptoTendencia we keep aware of the news that mark in the months to come. And without doubt, if there is something that is going to determine the state of the crypto world in this 2020 will be the virtual currency of government. One of the main financial trends of this year, and for which China is already preparing with the entry into force of a new crypto law.
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The emergence of virtual currencies in the government
During the year 2019 one of the most important trends for the crypto world. It was the recognition on the part of multiple actors of weight, such as China, the importance of the cryptocurrencies. And the technology that makes them possible: the Blockchain. This is a trend that was accentuated further by the announcement by Facebook of its own virtual currency, the Pound. Which represents a threat to the monopoly that States have traditionally maintained over the monetary policy. By pretending to insert a coin business, independent of the will of the States. Facebook, along with more than twenty companies, world-class, grouped in the Pound Association. Have put in a check to the major governments of the world. And have driven, without intending it, the development of virtual currencies by the government. Therefore, instead of being limited only to prohibit the use of Pound in their countries. Many governments, especially that of the people’s Republic of China, have accelerated the creation of their own virtual currencies. With which they can offer all the benefits that Pound intends to introduce to the market. But keeping control over the same, following the pattern marked by the government’s fiat money.
The new chinese law
However, it is not enough for the development of a virtual currency, for a country to be put at the head of the cryptographic technology. On the contrary, if you do not create a legal framework that recognizes and encourages the development of these products. Governments alone, without the support of the civil society, will never be able to stay at the head of the crypto world. This is exactly what you try to do China with the creation of the first Law, regulating the administration of codes in cryptography. As part of the effort to prepare the ground for the launch of the virtual currency the government of china. This was approved on 26 October by the National Congress of the Chinese People. And splits the password cryptographic that may be administered in the country in three different types. Simple passwords, commercial and common. We can expect that this will facilitate the adoption of technology Blockchain in the country. When China is expected to launch its virtual currency government throughout this year. That is in effect a new law that go to preparing the ground for the adoption of the same. And by extension of the chains of blocks in the asian country. Deserves to be our first Data Day of the year 2020 in CriptoTendencia. The following two tabs change content below. Student of International Studies, interested in issues of economy and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and the cryptocurrencies in particular.